Tesla plans to launch its first Robotaxi ride in Austin next month.
Robotaxi represents a core part of the company's artificial intelligence (AI) opportunities.
If Tesla successfully launches a successful launch, investors can cheer for the stocks as if there is no tomorrow.
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After an incredible two-year period in the stock market, Big Tech has performed poorly in 2025. Tesla (NASDAQ: TSLA)its stock has so far fallen 15% (as of May 15).
While this sell-off makes Tesla one of the worst performers of the "huge seven" stocks, that may change soon.
Let's explore why June will be a key month for Tesla to come. More importantly, I will look at the latest trends around Tesla stock to help assess whether now is a good time for stocks, and then throw away the parabola in a few weeks.
Tesla has made most of its revenue and profits from selling electric vehicles (EVs). Unfortunately, Tesla's electric vehicle business has encountered obstacles and growth has stalled. While most management teams won’t be excited about these dynamics, Tesla CEO Elon Musk seems to be confident in the direction the company is heading.
reason? Musk's vision is not just Tesla to sell electric cars. Instead, his eyes were set on building autonomous fleets for ferry passengers - an ambition known as Robotaxi.
Musk is committed to launching his first Robotaxi ride next month in Austin, Texas, according to Tesla's first-quarter earnings call.
Robotaxi has been one of the pillars of the bull market around Tesla stocks for years. Now, it seems the company has finally built enough vehicles to launch its first paid service and compete with other ride-hailing businesses, e.g. Uber,,,,, Lyftand Waymo.
As an investor in Tesla, I'm very excited about the Robotaxi launch. However, this is not the first time Tesla has hyped up new products, and I know it is a prudent strategy to stay rooted now, because Tesla does have a history of missing deadlines. Although the company often follows its ambitions, it does not always follow the schedule stated by Musk. Since the core part of the AI paper around Tesla is rooted in the Robotaxi business is successful, any delay emitted is a red flag.
Let's stay optimistic here and say Tesla does launch the launch next month. While this is exciting, investors need reality. Robotaxi takes time to scale and acquire customers.
That's why Musk signaled to investors "From a (a) financial perspective, the real question is when will it really become the bottom line of the company." According to him, Robotaxi will start "moving the financial needle" to mid-next year.
From a financial standpoint, the fact that Robotaxi will initially be Tesla's intangible contribution is important. Tesla Stocks are typically experienced fleeting experiences of narrative-based narratives (both positive and negative).
If Tesla does launch Robotaxi in Austin next month, my instinence is that stocks will soar. In fact, the chart below shows that Tesla stock has been spreading lately - no clear reason.
Of course, positive progress around tariff negotiations could play a role in Tesla’s recent earnings (and the market as a whole). However, there is still little clarity on how these negotiations particularly affect Tesla's business.
In the case of Robotaxi, Musk has warned investors not to put too much weight on early results, suggesting that the business will take time to expand and become a meaningful new source of sales and profits. That said, expectations are still high, and Tesla's stock may drop if the Robotaxi launch is delayed or failed.
For these reasons, I recommend sitting off the market with Tesla's investment now. Austin is just a market for Robotaxi and over time it will become a global operation. If Robotaxi does prove to be a profitable expansion of Tesla's electric vehicle business, investors will have plenty of opportunities to invest in stocks as the business grows to more AI players than automakers.
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Adam Spatacco has positions in Nvidia and Tesla. Motley fool is in the position and recommended Nvidia, Tesla and Uber Technologies. Motley Fool has a disclosure policy.
Prediction: This Artificial Intelligence (AI) stock will be parabola in June (Hint: Not NVIDIA) was originally published by Motley Fool