It's just a car company. Level 4 autonomy is not going to be achieved for now while Elon Musk continuously insinuates that Level 5 autonomy will be available soon .

Tesla has been sitting on the biggest mountain of data needed to train AI / self-driving for more than a decade. I don't know how much they have invested in their AI capabilities, but their data centre capacity is impressive. And in doing so, they themselves inadvertently provide proof of what the limitations of AI will be. Autonomous driving is long overdue if current AI promises are to be believed. Instead, Elon Musk is now outlining yet another new vision with the Robot Taxi and behind it yet another dream of the Tesla Optimus Robot. Let him deliver on that initial promise of the self-driving car first.

Robotaxi (Level 5) is at best only possible in highly controlled environments and therefore does not have the potential the general public thinks it has. Elon has been promising/insinuating the self-driving car since 2015. Tesla is therefore not going to live up to expectations at all and will soon face tough competition from Chinese EV builders. This company's PE should therefore stay below 25 to consider a share purchase at all.

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Disclaimer

The user Friso holds no position in NasdaqGS:TSLA. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.