Tesla Stock Price at Risk of Hitting $335 Amid Robotaxi Woes

Key Insights

• Tesla stock has retreated in the past few weeks, moving from a high of $453 to $385.
• The company only has 59 robotaxis on the road, a year after launch.
• Technical analysis suggests that the stock has more downside to go.

Tesla stock price remained under pressure this week, falling to a low of $385, its lowest level since May 1 this year. It has moved into a correction after falling by over 14% from its highest point this month. This retreat may continue as investors focus on SpaceX and the ongoing robotaxi woes.

Tesla Stock Price at Risk as Focus Remains on SpaceX

TSLA shares have retreated in the past few days, continuing a trend that started on May 13 when it peaked at $453. The stock may continue to fall in the near term as investors focus on SpaceX, which will launch its initial public offering on Friday this week.

The IPO has already become the most successful one on record, with media reports saying that it has become highly oversubscribed. This means that the company may raise over $150 billion in this IPO, valuing the company at over $2 trillion.

There is a likelihood that some Tesla investors will start rotating towards SpaceX, as the former faces major headwinds. SpaceX is seen as a better alternative because it is in some of the best industries. It is the biggest player in the space industry, and a top name in the artificial intelligence (AI) industry.

Tesla’s Bet on Robotaxi is Failing

One of the top reasons why Tesla’s stock price has done well since last year is because of its bet on the robotaxi business. Robotaxis are designed to operate as a fully autonomous ride-hailing network using Tesla vehicles equipped with cameras, AI computers, and Tesla’s Full Self-Driving (FSD) software.

Tesla launched the service last year after years of building. However, a year later, the business remains under intense pressure with just 59 vehicles on the road, a sign that demand remains weak.

A major challenge for this is the fact that scaling a large network of autonomous vehicles in a large country like the United States is not easy. Also, there are signs that competition from Waymo is rising. According to its website, Waymo has served over 20 million rides and has accumulated over 200 million miles of driving experience.

Tesla really needs its robotaxi business to work as its core EV segment is struggling, with competition in key markets rising substantially.

The most recent vehicle delivery numbers showed that it produced 358k vehicles in the first quarter, much lower than the 408k it made during the quarter. This means that it sold 50,000 fewer vehicles than it manufactured.

Tesla is also facing substantial competition from top competitors, including Chinese companies like XPeng, BYD, and Nio. These companies are all growing their market share in China and other countries.

Meanwhile, its plan to launch a humanoid robot called Optimus faces some major headwinds. This robot aims to replace the highly boring and repetitive tasks. It will be used by families and also companies in areas like logistics and manufacturing. The challenge is that the industry is highly competitive, with companies like ABB, Figure AI, and Boston Dynamics.

Tesla Stock Price Technical Analysis

The daily chart shows that the TSLA stock price has pulled back in the past few days. It has slumped from $453 to $396 today. This price is slightly above the Major S/R pivot point and has moved below the 50-day moving average.

The stock is also hovering at the 38.2% Fibonacci Retracement level. Therefore, the path of the least resistance for the shares is downwards, with the next key target to watch being $335, its lowest point on April 9. This price coincides with the weak, stop, reverse level of the Murrey Math Lines.

On the flip side, a move above $420 will invalidate the bearish outlook and point to further gains.

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