Why Tesla Stock Hit the Brakes Today

Core Insights - Tesla's stock has recently experienced a significant increase of over 15% in the past week, but is currently facing a decline of 4.5% due to rising competition in the self-driving vehicle sector [1] - The competition is intensifying as Waymo and Toyota announce a partnership to develop self-driving technology, which could impact Tesla's growth plans [1][6] Company Analysis - Tesla's future revenue and profit growth heavily relies on its self-driving technology, as emphasized by CEO Elon Musk [2] - Unlike Tesla, competitors like Waymo already have self-driving vehicles generating revenue as robotaxis, while Tesla's fleet primarily consists of privately owned electric cars [3] - Waymo is currently providing 250,000 driverless taxi rides per week, indicating its operational scale in the market [4] Competitive Landscape - The partnership between Waymo and Toyota aims to leverage Waymo's autonomous technology and Toyota's vehicle expertise to create next-generation personally owned vehicles, potentially lowering costs [6] - This collaboration may pose a threat to Tesla, as it could lead to the development of more affordable self-driving vehicles, impacting Tesla's market position [6]