Tesla Shares Are Declining: What Should Investors Expect?

The value of Tesla shares has fallen by %10 amid a general sales wave in the technology sector, drawing investors' attention. Following the approval of CEO Elon Musk's $1 trillion compensation package, Tesla shares dropped below the $400 threshold, a level not seen since September 15. If the shares fall by an additional %5.15, it will mark Tesla's worst day since July.

This situation indicates that Tesla shares have lost approximately %10 of their value since the meeting that approved the $1 trillion compensation package, according to notes from Bespoke Investment. However, despite the controversies surrounding Musk's compensation package, analysts such as Dan Ives from Wedbush remain optimistic about Tesla shares.

Ives emphasizes that Tesla's future artificial intelligence projects are significant for investors. During an investment event in New York, he stated, "This will be the most important period in Tesla's story to date." Ives described the passage of Musk's compensation package as a "bright green light" for Tesla's artificial intelligence and autonomous technologies, assigning an Outperform rating to the stock with a price target of $600.

Among Musk and Tesla's top goals are self-driving vehicles and robot taxis. Ives noted, "It is important to understand what Musk and Tesla are trying to achieve. They are building the future of artificial intelligence. They will hold 80% of the autonomous space over the next decade," he said.

Tesla is currently testing robot taxi services in Austin, Texas, and the San Francisco Bay Area, but with safety drivers. During the last investor meeting, Musk announced that the safety drivers for the robot taxis in Austin would be removed by the end of the year. He also mentioned that Tesla's robot taxi service would be tested in cities such as Miami, Dallas, Phoenix, and Las Vegas.

Musk revealed that production of Tesla's custom-built robot taxi, the Cybercab, will begin in April 2024. Ives predicts that the autonomous technology will advance the development of Tesla's Optimus humanoid robots.

Ives stated, "Tesla's Optimus is the fundamental target of your expectations. It's more than just vehicle deliveries. You need to be patient for the future of artificial intelligence," reminding investors that the process will take years. During the investor meeting, Tesla announced plans to establish a 1 million unit Optimus production line at its Fremont, California factory, and a future 10 million unit line at Giga Texas in Austin. Although the company did not share a specific timeline, Optimus is currently in pilot production at Fremont.

Meanwhile, to fully receive Musk's compensation package, he must deliver 10 million active Full Self-Driving (FSD) subscriptions, 1 million Optimus robots, and 1 million robot taxis.