Tesla (TSLA) showed a very early prototype of an Optimus humanoid robot. The company’s introduction
of the future product is not a catalyst for the stock.
If anything, the robot is only a proof of concept for Tesla’s artificial intelligence capabilities.
Optimus walked slowly and awkwardly on stage It turned and waved to the crowd. Sadly, three men
had to carry the robot on the stage.
Questionable Market
Optimus will not re-energize investor interest in Tesla stock. Vehicle deliveries in the quarter will
interest investors the most. In addition, the company must report positive development in achieving the
next level of autonomous driving. If it fails to do so, competitors may catch up. To protect its moat in the
electric vehicle sector, Tesla needs to leap beyond the Level 2 autopilot classification.
The Society of Automotive Engineers (SAE) system has six levels, from 0 to 5. Tesla’s AutoPilot offers a
suite of advanced driver safety systems. Yet TSLA stock trades at a 45 times forward price-to-earnings
ratio. The market continues to offer a rich valuation that is not justifiable.
For the year-to-date ended September 30, 2022, Nasdaq lost 32.8% of its value. Growth investors are
scaling back on speculations. They are becoming increasingly unwilling to overpay for flashy stocks that
do not deliver on promises.
Stay neutral on Tesla. TSLA stock does not have a new catalyst with Optimus.
