Adam Spatacco, The Motley Fool
5 min read
In This Article:
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Tesla is planning to launch its first Robotaxi rides in Austin next month.
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Robotaxi represents a core part of the artificial intelligence (AI) opportunity for the company.
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If Tesla pulls off a successful launch, investors could cheer on the stock like there's no tomorrow.
After an incredible two-year run on the stock market, big tech hasn't fared quite so well in 2025. Among the biggest laggards in artificial intelligence (AI) stocks is Tesla (NASDAQ: TSLA), whose shares have declined 15% year to date (as of May 15).
While this sell-off makes Tesla one of the poorest performers among the "Magnificent Seven" stocks, that may soon change.
Let's explore why June is going to be such a pivotal month for Tesla's future. And more importantly, I'll take a look at more recent trends surrounding Tesla stock to help assess whether now is a good time to pounce on shares before they potentially go parabolic in a few weeks.
Tesla derives the majority of its revenue and profits from selling electric vehicles (EVs). Unfortunately, Tesla's EV business has hit a road bump, and growth has stalled. While most management teams wouldn't be thrilled by these dynamics, Tesla CEO Elon Musk seems quite confident in the direction the company is headed.
The reason? Musk's vision isn't just for Tesla to sell EVs. Rather, he has his sights set on building an autonomous vehicle fleet to ferry passengers around -- an ambition known as Robotaxi.
Per Tesla's first-quarter earnings call, Musk is committed to launching the first Robotaxi rides next month in Austin, Texas.
Robotaxi has been one of the pillars supporting the bull thesis around Tesla stock for years. Now, it seems like the company has finally built enough vehicles to launch its first paid service and compete with other ridehailing businesses such as Uber, Lyft, and Waymo.
As an investor in Tesla myself, I am really excited about the Robotaxi launch. However, this is not the first time Tesla has hyped up a new product, and I know that remaining grounded right now is the prudent strategy because Tesla does have a history of missing deadlines. While the company often follows through on its ambitions, it's not always according to Musk's stated timeline. Since a core part of the AI thesis around Tesla is rooted in the Robotaxi business being successful, any delay in the launch is a red flag.
