My honest opinion about Tesla shares

• The robotaxi is the best way to maximize the economic value of an EV.

• Robotaxis are an integral part of the EV industry, which is why Tesla’s Rivals have invested billions in their development.

• Tesla is a speculative investment, but it is a support from a dominant presence on the market.

• These 10 shares can be the next wave of Millionaires Mint ›

Invest in Tesla (Nasdaq: TSLA) Nowadays, a reset of investors’ perspectives requires what the company is and in what kind of industry it is active. Keep that starting point in mind, here is a view of Tesla, the industry and the investment proposal for the shares.

Traditionally, investors considered the car industry as a very competitive, mature, low-growing and relatively low margin and granted shares in the industry the type of low valuations that such shares deserve. After all, having to develop new models to develop the five to seven years and to renew them every few years is expensive because the preferences of consumers change and competitors introduce new models. In addition, car manufacturers strive to generate income from after-sales services that include financing, parts and maintenance.

For the following reasons, this traditional business model is challenged by EVs:

• Investments in EVS -the -person profit margins even further, because investments in batteries, new production processes and supply chains requires.

• The dramatically lower service and maintenance costs make it much more difficult to generate income from parts and maintenance.

As such, if EVs are the future and want to remain a car maker relevant for that future, it must find a way to lower the previous costs of EVs. It must also develop a way to generate recurring Na-Sales income. Tesla thinks it has the answer to both questions.

Recognizing that EVs will have relatively higher costs in advance, but considerably lower tank and maintenance costs compared to internal combustion engine (ICE) cars, is the solution of the car industry to take advantage of the natural economic benefits of EVs that distinguish them from ice cars. The following table helps to summarize things.

Data source: table by author.

Tesla has three solutions.

1. Lower the prior costs of ownership by scale scale in EV sales volumes (to enable it to reduce the relatively high costs per vehicle and in turn pays the costs of the customer).

2. Develop robotaxis that fully benefit from the fact that EV’s generate economic value by running more.

3. Develop recurring income, currently through services, charging, software subscriptions, in particular complete software for self-driving (FSD), and in the future profit sharing of robotaxi rides. Robotaxi income came from special cybercabs (the value of which is improved by FSD) or existing Tesla’s that have been transformed through, not yet released, non -controlled FSD software.

All this leads to the first honest opinion of Tesla.

The robotaxi concept is not a “moonshot” for the company or industry; It is an integral part of the future of the Industry of Automotive and Electric Vehicle (EV) and Tesla is at the forefront.

All the above is known in the industry; That is why Ford Motor Company Invests $ 5 billion in EV development and why legacy car manufacturers continue to invest billions in loss-making EVs to try to take market share. It is also the reason why Ford car manufacturers, GM” VolkswagenAnd others have previously invested billions in developing autonomous driving software and robotaxis. Moreover, technology companies love Alphabet (Google’s Waymo) and Amazon (ZOX) have invested billions in autonomous vehicle companies.

Although there is a reason why many companies have invested heavily in autonomous driving and robotaxis, there is also a reason why some, such as GM, have left the development of Robotaxi and why Ford and Volkswagen have drawn the plug in investing in Argo AI, a company that develops autonomous vehicles.

It is not easy to do, especially if you are a minor player on the EV market.

Tesla is not a minor player in EVs. Despite the falling turnover as a result of rivals that are effectively subsidized, it still has a dominant market share in the US, it has a fleet of cars to collect huge amounts of data to improve the FSD, and the robotaxi outlines, which started in 2025, is on the road.

Tesla is a speculative growth stocks, but it has considerable advantages compared to most growths, including the leading market share and a potentially cost-effective FSD offer from Robotaxi/without supervision.

Although recurring income from robotaxis and non -controlled FSD, as well as Cybercab sales (volume production is planned for 2026), are promising, none of these initiatives have become flourishing, and significant technological and regulatory obstacles still have to be overcome.

It is a speculative growth stock, with a rating that fits together. There are no guarantees around Robotaxis and FSD approval without supervision, and CEO Elon Musk has a history of overly optimistic about this issue.

That said, it is where the industry goes and where most old car manufacturers wanted to be. As such, Tesla is a stock with a high risk/risky, but such shares deserve a place in a portfolio, perhaps not as a core possession for most investors.

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Lee Samaha has no position in one of the aforementioned shares. The Motley Fool has positions and recommends Alphabet, Amazon and Tesla. The Motley Fool recommends General Motors and Volkswagen AG. The Motley Fool has a disclosure policy.

My honest opinion about Tesla shares was originally published by De Motley Fool