Tesla robotaxi pivot 'extremely risky' for investors: Analyst
Deutsche Bank has revised its rating on Tesla (TSLA), downgrading the stock to Hold from a Buy rating as the automaker shifts its focus to the production of a robotaxi. Deutsche Bank Lead US Autos Analyst Emmanuel Rosner joins Market Domination to explain the downgrade. Rosner says "there's a strategic change" occurring within Tesla, saying that the company's new pricing strategies could potentially boost margins and overall profitability. However, he cautions that if Tesla redirects all of its resources toward the development of a robotaxi, it could face prolonged challenges. For long-term investors, the concept of the robotaxi remains "exciting", but Rosner expresses concerns about Tesla's new direction. He emphasizes the risks of concentrating the company’s efforts solely on the robotaxi, moving away from its core electric vehicle production. According to Rosner, this strategy "is extremely risky for investors", as "it's betting the entire company on robotaxi", an unproven market segment that other automotive competitors have faced setbacks in. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Angel Smith
