Tesla has some major near-term challenges, analyst says

Robo Taxi Launch & Expectations - Tesla delays robo taxi program launch to June 22nd, after initially planning for public rides to begin today [1] - The robo taxi launch is expected to be low-key compared to the October event in Los Angeles [2] - Initial deployment will involve a limited number (around a dozen) of Model Ys with the latest full self-driving software, operating in a geo-fenced area of Austin with remote supervision [3] - Key metrics for success include the expansion rate of the geo-fenced area, the increase in the number of vehicles, and expansion to other markets [4] - Elon Musk anticipates potentially having approximately 1,000 robo taxis on the road by the end of the summer, but this is considered optimistic [5] Financial Performance & Valuation Concerns - The stock has rebounded significantly since the first quarter earnings release in April, increasing by approximately 100 points [6] - Valuation is a major concern, with the stock trading at over 110 times the EPS estimate for the next year [6] - Tesla is experiencing ongoing market share losses in China, Europe, and the US [7] - In China, Tesla sales were down 15% in May, while total EV sales increased by 38% [7] - Tesla will be losing tax credits on EVs, energy storage, and solar products [8] Competitive Advantages & Challenges - Tesla possesses significant advantages in terms of cost and production capacity, with an annual vehicle production capacity of approximately 23 million units [11] - Tesla's autonomous technology relies primarily on cameras and AI, differing from Whimo's approach that combines LAR, radar, and cameras [12] - Tesla has the potential to convert much of its existing fleet to unsupervised robo taxis via software updates [13] - Recent stock selloff is partly attributed to Elon Musk's feud with President Trump, impacting the brand and contributing to market share losses [13][14]