Jed Dorsheimer Advises Caution on Tesla Stock Until Robotaxi Data Releases
Market analyst Jed Dorsheimer has issued a cautious outlook on Tesla (NASDAQ:TSLA) stock, particularly in relation to the anticipated rollout of its robotaxi service. Despite notable developments at the company, he emphasizes the importance of assessing the data before making investment decisions.
Key Developments at Tesla
- Elon Musk’s proposed compensation package has been approved by 75% of shareholders.
- Dorsheimer, a top-ranked Wall Street analyst, sees this approval as logical given Musk’s substantial stake.
- The shareholder meeting also revealed a proposal for Tesla to invest in xAI, likely to pass due to favorable votes.
Battery Technology Enhancements
Dorsheimer recently published a white paper detailing how utilizing batteries can enhance the efficiency of existing power generation systems. Currently, these systems operate at approximately 50% capacity.
Musk echoed this sentiment during the shareholder meeting, asserting that batteries could play a pivotal role in generating new grid electricity. Tesla’s production capacity for Megapack and Megablock is projected to increase from 80 to 130 GWh, supported by new lithium refining and LFP cell manufacturing facilities.
Robotaxi and Full Self-Driving Updates
- Musk confirmed plans to deploy 1,500 robotaxis by year-end, significantly faster than competitor Waymo.
- Upcoming software updates will enhance Full Self-Driving (FSD) capabilities, allowing functionalities such as “text and drive” and “sleep and arrive.”
- The next rollout cities include Las Vegas, Phoenix, Dallas, Houston, and Miami, with plans for expansion into China by March.
Dorsheimer reported that Tesla’s FSD technology has demonstrated a crash rate nearly seven times better than human drivers, potentially saving thousands of lives annually. However, he cautions that the overall valuation of Tesla stock heavily relies on the success of its robotaxi initiative.
Market Outlook
Despite the positive developments, Dorsheimer maintains a “Market Perform” rating on Tesla shares, indicating a neutral stance without a specific price target. His cautious outlook reflects concerns over the company’s current valuation, particularly as the stock is forecasted to experience a 12-month decline of about 14%, with an average price target of $382.54.
With nine other analysts sharing a neutral view, the consensus reflects uncertainty amidst the promising advancements in Tesla’s technology and strategy. Investors are encouraged to monitor upcoming data closely, particularly regarding the robotaxi rollout.
