Summary
⚈ Robotaxi impact remains unclear due to delays and regulatory issues.
⚈ Tesla faces sales declines, political backlash, and safety investigations.
Investors who purchased Tesla (NASDAQ: TSLA) shares when the company unveiled its Robotaxi project are currently sitting on gains, although those returns have come with significant volatility.
When CEO Elon Musk introduced the Robotaxi project on October 10, 2024, branded as the ‘Cybercab’, TSLA stock was trading at $238.
As of the latest market close, with TSLA trading at $284.90, a $1,000 investment made at the time of the announcement would now be worth approximately $1,197, representing a 19.7% return.
The most dramatic gains came in the weeks following the November 2024 U.S. presidential election. Tesla’s stock surged during a post-election rally, driven by optimism over a pro-business regulatory outlook under the incoming Donald Trump administration, which investors viewed as favorable to Musk’s ventures.
By December 17, Tesla shares had peaked at $479, pushing the initial $1,000 investment to approximately $2,013, a 101% return in just over two months.
However, the rally was fueled less by concrete progress on the Robotaxi and more by market enthusiasm over Musk’s perceived alignment with the new administration.
Tesla stock yet to price Robotaxi impact
Tesla has yet to fully price in the impact of the Robotaxi, with no tangible products on the market and a lukewarm reception from investors and analysts, who were disappointed by the lack of production timelines, regulatory clarity, and details on profitability.
Meanwhile, Tesla’s stock has been under pressure since reaching its peak in December. The company reported a 13% drop in first-quarter 2025 vehicle sales, marking its first annual decline, driven by weakening demand for its EVs and rising competition from lower-cost rivals, particularly in China.
Additionally, Tesla’s brand value has taken a hit due to backlash against Musk’s political activities, including protests and vandalism at Tesla showrooms. However, Tesla has shown short-term strength after Musk announced that he would be dedicating more time to running the company.
Further complicating matters, the Robotaxi project itself faces hurdles that have tempered investor enthusiasm. Regulatory scrutiny remains a significant barrier, with the U.S. National Highway Traffic Safety Administration investigating Tesla vehicles equipped with Full Self-Driving (FSD) software after several reported crashes.
Featured image from Shutterstock
