CEO Elon Musk unveiled Tesla’s (TSLA) new humanoid robot, “Optimus,” at the company’s robotaxi event on Thursday. These robots are designed to perform various tasks, from serving drinks to babysitting children. To discuss why Tesla’s stock is declining following this reveal, Hamilton Capital Partners chief investment officer Alonso Munoz joins Catalysts.
Munoz describes the event as “futuristic” and “fun to watch.” However, he believes analysts will need to wait for the company’s earnings call to fully understand Musk’s strategy, which could serve as a catalyst for the stock. While some specifics remain unclear, Munoz considers the dip in the stock price “an overreaction.”
As Tesla has shifted focus from creating a lower-cost vehicle to emphasizing autonomous driving and other ventures, investors are questioning whether this is the best strategy for the automaker. Munoz comments, “In the macro environment we’re in, we saw consumer confidence come in a little bit lower this morning, and interest rates are still high. So affordability is a big question analysts are mulling over. When we look at vehicles, it’s a major purchase for consumers. Whether it’s their house or their vehicle, it’s one of their highest costs. I think it would be smart for Tesla to roll out a lower entry-level vehicle at a lower price point.”
Nevertheless, he remains “excited” about the company’s autonomous driving prospects.
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This post was written by Angel Smith