Japan Is the Silicon Valley of the Robot Revolution. The Stocks Are Cheap.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 09 2025
0mins
Should l Buy TSLA?
Source: Barron's
Robotics Industry Outlook: Jensen Huang of Nvidia predicts a significant shift in robotics, likening it to the "ChatGPT moment," with advancements towards intelligent humanoids, while Japan remains a leader in industrial robotics despite slower growth and investment in humanoid technology compared to the U.S. and China.
Emerging Applications and Challenges: Innovative projects in Japan are addressing labor shortages with robotic solutions, but the development of effective data for robot training poses challenges; the potential for widespread adoption of humanoid robots is anticipated in the 2030s, contingent on technological advancements and infrastructure.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 401.93 USD with a low forecast of 25.28 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 406.010
Low
25.28
Averages
401.93
High
600.00
Current: 406.010
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Reality Generator Utilization: Musk emphasized that Tesla will leverage its reality generator to aid in robot training, using millions of simulated robots in a simulated world to close the 'simulation to reality gap', improving robot performance in real-world environments.
- Solar Production Goals: Discussing solar energy, Musk reiterated that both Tesla and SpaceX aim to produce 100 GW of solar energy annually, demonstrating the company's commitment to scaling domestic solar cell production and accelerating the adoption of renewable energy.
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See More
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- Safety Regulatory Scrutiny: Waymo is under scrutiny from safety regulators following multiple incidents involving its robotaxis, including a collision with a child near a school zone, highlighting serious safety concerns regarding its operations.
- Call for Regulatory Framework: Tesla's VP of Vehicle Engineering, Lars Moravy, urged lawmakers during the hearing to establish a federal regulatory framework for autonomous vehicles, reflecting the industry's urgent need for regulatory clarity and safety standards.
- Stock Price Volatility: Alphabet Inc.'s stock fell 0.54% at market close on Thursday and dropped an additional 2.79% in after-hours trading to $322.00, indicating that concerns over its autonomous driving service may be affecting investor confidence.
See More
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- New Trademark Filings: Tesla filed trademark applications on February 3 with the USPTO for the wordmark 'Roadster' in a stylized format and a triangle design featuring three flowing lines, indicating the company's commitment to the Roadster model and its future market positioning.
- Performance-Centric Design: CEO Elon Musk stated that the Roadster will focus on performance akin to hypercars like Ferrari, with safety not being the primary goal, a strategy that may attract high-end consumers and enhance brand prestige.
- Aerodynamic Innovation: Earlier patent applications revealed Tesla's development of an active aerodynamic system that directs airflow through fans to generate downforce, potentially allowing the car to hover, significantly enhancing the Roadster's performance and competitive edge in the market.
- Market Reaction: Despite Tesla's strong momentum metrics, its stock price fell 2.17% at market close on Thursday and dropped an additional 2.09% in after-hours trading, reflecting cautious investor sentiment regarding the new model's launch, which could impact investor confidence.
See More
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- Significant Market Potential: Tesla's robotaxi business is expected to scale up by 2026, with Musk stating that services will roll out in multiple U.S. cities this year; if realized, this prediction could provide strong competitive evidence for investors, especially against Waymo.
- Investor Confidence Boost: The launch of Tesla's first robotaxis in Austin could significantly enhance investor confidence in the company's long-term growth potential, particularly in its leadership in electric vehicles and autonomous driving.
- Substantial Valuation Risks: Tesla's price-to-earnings ratio stands at 390, far exceeding the S&P 500 average of 26, which necessitates that investors have immense confidence in the company's technological leadership and its ability to dominate the robotaxi market.
- Cautious Investment Advice: While the potential growth of the robotaxi business could act as a catalyst for Tesla's stock, given Musk's past overly optimistic projections that often fell short, investors should adopt a wait-and-see approach to mitigate risks associated with high valuations.
See More
