Tesla stock rose above a new aggressive entry Tuesday, as the U.S. EV giant continues to advance on expectations around the rollout of its robotaxi service in June. Meanwhile, China EV makers tumbled as a new price war got underway.
TSLA advanced nearly 7% to 362.89 in Tuesday's stock market action, part of a 28.6% gain in May, moving above a 354.99 buy point. The entry was the high from May 20, according to MarketSurge charts, plotted from a handle that's too low to be valid. Tesla fell 3% to 339.34 last week.
Tesla-rival BYD dived Tuesday after the company slashed vehicle prices, launching a big China EV war. Several rivals fired back with big discounts.
All About Robotaxi And Autonomy
Tesla is preparing to launch its limited robotaxi service in Austin next month. After meeting with Tesla last week, Morgan Stanley analyst Adam Jonas said in a recent note to clients that this will likely be around 10 to 20 cars, on public roads and be invite only with plenty of tele-ops to ensure safety levels.
Chief Executive Elon Musk, speaking with CNBC last week, said that there will probably 10 robotaxi Model Ys in the first week and that there could be 1,000 in a "few months."
Musk did not give a specific date for the rollout, but said it would come before end of June. The Tesla chief also confirmed there will be human supervisors for the autonomous trips. He also said that the robotaxi service will be geofenced, meaning portions of Austin will unavailable.
Elon Musk Says He Will Remain Tesla's CEO For At Least Five More Years
During the first-quarter earnings call in April, Musk said that Tesla was at that time still debating what the robotaxi service would look like, but that there will be "maybe 10 to 20" vehicles on day one.
Meanwhile, Musk also made it clear during that call that the robotaxi vehicles in Austin will be Model Ys.
"We expect to be selling fully autonomous rides in Austin in June," Musk said. "The team and I are laser focused on bringing robotaxi in Austin in June," adding that "unsupervised autonomy will first be solved for the Model Y in Austin."
Separately, the CyberCab product is on track for production next year, according to Tesla. The CyberCab will use the "unboxed" manufacturing system (a modular approach). Tesla executives said on the company's first-quarter earnings call that the unboxed process is "progressing," suggesting it's not yet ready.
Tesla Robotaxi Launches In A Few Weeks. These Are The Details.
Tesla Stock Performance
TSLA is up more than 28% in May. On May 9, shares blasted above the 200-day moving average, offering investors an aggressive entry. Shares are still down about 10% this year, despite surging on robotaxi bets following the April 22 Q1 conference call. Shares are around 25% below their 488.54 peak on Dec. 18.
"We've lost some sales perhaps on the left but we've gained them on the right," Musk said in an interview Tuesday at Bloomberg's Qatar Economic Forum in Abu Dhabi, referring to consumers on the political right and left.
"The sales numbers at this point are strong and we see no problem with demand," Musk added.
Musk cited TSLA stock as evidence that Tesla EV sales are doing well.
"Our stock wouldn't be trading near all-time highs if things weren't in good shape, they're fine, don't worry about it," Musk added.
Troy Teslike posted to X last week that he expects Q2 vehicle deliveries between 350,000-395,000, or marking about a 11%-20% decrease vs. a year ago. For the full year, Teslike expects Tesla vehicle deliveries to decline more than 16%. Teslike's delivery estimates are highly respected among retail investors.
Tesla stock has a 21-day average true range of 5.20%. The ATR metric, available on IBD's MarketSurge charting tool, gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
The S&P 500 and Nasdaq are now in a power trend. Investors can buy stocks with ATRs up to 8%, though they should be wary of being too concentrated in high-octane names.
Tesla stock has a 79 Composite Rating out of a best-possible 99. Shares also have a 93 Relative Strength Rating and a 58 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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