"Tesla's ( NASDAQ: TSLA) stock trades at a high valuation for several reasons. Today, this has nothing to do with car sales. Its unit sales in the EU dropped 48% in October. Its market share in the US has fallen, though it still leads all competitors. In China, the world's largest EV market, its market share has become small. That leaves investors with CEO Elon Musk's plans for a fully self-driving car and a robotics business, both in early stages. The robotaxi and fully self-driving car sector has become crowded."
"The fact of the matter is that Google has more financial resources than Tesla. Additionally, Waymo has been in the market since 2009 and has clocked millions of miles. It has partnerships with over 100 communities. Most importantly, Waymo has a partnership with Uber ( NYSE: UBER), which could bring its technology to every city in the US and many overseas cities once government bodies approve it."
Tesla's unit sales in the EU dropped 48% in October and US market share has fallen, though Tesla still leads competitors. In China, Tesla's market share has become small. Investor expectations now center on CEO Elon Musk's plans for a fully self-driving car and a robotics business, both in early stages. The robotaxi and full self-driving sector is crowded with strong Chinese competitors and US leader Waymo. Waymo has greater financial resources, has operated since 2009 with millions of miles, partners with over 100 communities, and a strategic Uber partnership that could enable rapid geographic scale once approved.
Read at 24/7 Wall St.
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