Tesla Motors’ (NASDAQ: TSLA) disastrously bad year – at least in terms of the stock market – has seemingly come to an end – at least in terms of the extended trading session – following the release of its first-quarter earnings report on April 23, 2024.
While Elon Musk’s electric vehicle (EV) maker reported comparatively weak figures for the trimester – and significantly undershot forecasts – the expectations were seemingly low enough that the report was well-received by investors.
Furthermore, an energized and optimistic Musk offered a string of reassuring announcements and projections in the earnings call, helping TSLA shares rocket 10.04% in the extended session.
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Several elements of the call stood out, including possible agreements with other companies pertaining to Tesla’s self-driving technology, potential uses for Optimus, and plans to launch an autonomous taxi service in the form of the ‘Cybercab.’
The ‘Cybercab’ was previously referred to as the ‘Tesla robotaxi’, with an unveiling of some variety being scheduled for August 8, 2024.
ChatGPT predicts Tesla stock price once the ‘Cybercab’ is launched
Given the excitement and positive momentum the earnings call offered, Finbold decided to consult the artificial intelligence (AI) of OpenAI’s flagship platform – ChatGPT – on how Tesla stock might fare when the ‘Cybercab’ materializes from an idea to an actual taxi on the streets.
First and foremost, however, it should be noted that ChatGPT generally considers the notion that such a taxi service would require level 4 or level 5 autonomy – self-driving that requires human intervention either never or in very extreme situations – a necessary prerequisite.
The AI explained that current forecasts place commercial availability of such technology near to 2030, meaning that autonomous taxis are still years away – unless Tesla launches expecting passengers to take the wheel every once in a while.
Though it is likely that ChatGPT is heavily steered in its prediction by the more recent trends, it may come as a surprise that its forecast for the launch of the ‘Cybercab’ is relatively bearish as it places the target price range for TSLA between $190 and $200.
The AI, however, also considers a substantially more bullish forecast – one that would see Tesla make substantial technological breakthroughs at breakneck speeds – completely plausible and believes that a ‘Cybercab’ launch in such a scenario would help TSLA hit $250.
On the other hand, ChatGPT also sees a future in which regulatory challenges and technological setbacks engrain Tesla’s recent woes into its long-term performance. Under such circumstances, the ‘Cybercab’ would not be the first available robotaxi and possibly not even the best, and could only see TSLA shares stand at $130 at launch.
Tesla stock price chart
Whatever ‘Cybercab’ may ultimately mean for Elon Musk’s EV maker and the passengers, the fact remains that the earnings report and the earnings call caused a violently positive reaction among investors and traders.
After a modest 1.85% climb to $144.68 in Tuesday’s session, TSLA shares rocketed 10.04% in extended hours, and Tesla price today, at press time, stands at $159.20.
Still, the EV maker has a long way to go to regain old highs as it has suffered substantial stock market damage in 2024. At the latest close, TSLA was a full 41.76% in the red on the year-to-date (YTD) chart and at its lowest price since January 2023.
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