Tesla's Stock Value Declines as Robotaxi Hopes Wane

Tesla (TSLA) shares closed the week with a decline on Friday. Hopes for robotaxis could not overcome the AI concerns that have affected the market. The sharp sell-off experienced on Thursday negatively impacted not only Tesla but also other "magnificent seven" tech stocks. This situation did not change even after a strong earnings report from Nvidia (NVDA).

On Thursday, Tesla shares lost more than 2%, and on Friday, they dropped by about 3%. Recent AI skepticism has increased due to the investments exceeding $1 trillion made by tech giants like Nvidia in companies like OpenAI (OPAI.PVT).

Tesla has become a robotic investment vehicle outside of the automotive sector by making significant AI investments in software areas such as data centers, chipsets, and Full Self-Driving (FSD) products. This could lead to a deepening of stock sell-offs.

However, there are also positive developments for Tesla. According to a report by Business Insider on Friday, Tesla has completed its certification process for robotaxi operation, according to a source from the Nevada Department of Motor Vehicles (DMV). This means Tesla can operate robotaxis on the road, but it needs approval from the Nevada Transportation Authority to commercially use these vehicles.

This week, according to a spokesperson for the Arizona Department of Transportation (ADOT), Tesla has completed the final step to launch its robotaxi service in the state. However, Tesla’s Arizona robotaxi service will still operate with a safety driver; this is similar to the company's application in Austin, Texas, and the San Francisco Bay Area.

Tesla has expanded its service in Austin and the Bay Area over the past few months. Competitors like Waymo are operating in various service areas across the United States, but Waymo does not need to include safety drivers as its service has already reached level 4.

For Tesla, which has not yet reached level 4, hopes for robotaxis have mobilized Wall Street analysts. Recently, Stephen Gengaro from Stifel raised Tesla's price target from $483 to $508, maintaining an 'Buy' rating. Gengaro noted that Tesla's management plans to expand to eight to ten major cities by the end of 2025.

As a result of Gengaro’s positive report on Friday, shares gained 3%. However, over the weekend, the shares lost 5%.