Apparently, Tesla (NASDAQ:TSLA) CEO Elon Musk wasn’t at all times keen to place robots on the manufacturing flooring. Nevertheless, evidently Musk is now prepared to simply accept and even embrace the automation revolution. He’s even on the brink of unveil a robotics venture with implications far past automotive manufacturing. It’s a dangerous proposition, to make certain, but I’m bullish on Tesla inventory nonetheless.
Electrical automobile (EV) producer Tesla is thought for its controversy-courting chief government as a lot as its modern, highly effective vehicles and vans. Musk pioneered, or not less than popularized, the automobile electrification motion in America.
Now, nonetheless, he’s getting ready to broaden into a brand new however associated enterprise enterprise. Consequently, Tesla inventory traders will have to be on board with Musk’s evolving imaginative and prescient of what EV manufacturing ought to appear to be – and who (or extra precisely, what) will make the clear vitality autos of right now and tomorrow.
Tesla’s Buyers Ought to Mark Their Calendars for September 30
Prepare, Tesla shareholders, as September 30 might be a day to recollect. No, it’s not an earnings report or perhaps a new automobile launch. It might truly be extra impactful than any current Tesla occasion, as “AI Day” simply would possibly unveil the longer term trajectory of the corporate, and of automation expertise typically.
On that day, Tesla plans to disclose a prototype from the corporate’s venture referred to as Optimus (presumably, a reference to the Transformers movie sequence). Optimus is designed to be a labor-saving robotic with purposes in Tesla’s manufacturing factories, but additionally doubtlessly in folks’s properties sometime.
In typical vogue, Musk teased the event of Optimus with a tweet, writing that Tesla’s “Autopilot/AI workforce” is engaged on the robotics venture. This tweet, which hinted at an end-of-the-month deadline, garnered hundreds of likes and a whole bunch of retweets. Furthermore, Musk has been reported as stating that Optimus manufacturing might begin subsequent yr.
This represents a U-turn in Musk’s sentiment towards robotics, it appears. It was solely 4 years in the past that he blamed reliance on manufacturing facility robots for sending Tesla to “manufacturing hell” 4 years in the past. On the time, Musk declared that people had been higher than robots at sure jobs.
That’s definitely true, however right now the Tesla CEO is keen to present automatons an opportunity to show their worth and is even championing robotics as a future-facing expertise. Final yr’s AI Day featured a dancer in a robotic costume and Musk discussing autonomous-driving expertise. Hopefully, this yr’s occasion will provide not solely spectacles to draw press consideration but additionally a deeper perception into Musk’s imaginative and prescient for Optimus inside and outdoors of Tesla’s giga-factories.
Optimus Robots May Assist to Handle the Labor Scarcity
It’s no secret that in America and elsewhere, companies are having bother filling important job positions. Automakers definitely aren’t any exception, and Musk is priming Optimus to be an answer for Tesla’s expertise acquisition woes, whereas additionally proposing that robots might assist resolve issues confronted by companies all through the financial system.
On the very least, robots might be cheaper than people – or not less than, that’s what Musk contends. Conceivably, utilizing robots as a substitute of human labor might decrease the price of a Tesla – another automotive, or a wide range of different merchandise, for that matter – down 30% and even 50%.
This concept gained’t endear Musk to some human autoworkers, however it’s not unimaginable that Tesla and different companies might accrue value financial savings by using robots, whereas additionally addressing America’s acute labor scarcity. Musk even posited that the deployment of robots corresponding to Optimus might “flip the entire notion of what’s an financial system on its head, on the level at which you don’t have any scarcity of labor.”
The Tesla CEO continued, “Economic system is GDP per capita. If you happen to don’t have a capital constraint, then the financial system simply could be arbitrarily big.” This line of reasoning would possibly or won’t stand as much as the scrutiny of math-minded economists, however there’s no denying that Musk’s enthusiasm is infectious.
Plus, right here’s a bombshell: Musk proposed that Optimus “might be extra helpful than the automotive in the long run.” Think about that: Tesla ultimately evolving from an EV producer to, primarily, a robotic maker.
Whilst you’re at it, additionally attempt to think about Optimus robots venturing exterior of Tesla’s factories, and making your dinner or mowing your garden. Musk imagines that Optimus will sometime do all of these issues and extra, together with caring for aged folks and even changing into a “buddy” to somebody needing a pal.
What’s the Value Goal of Tesla Inventory?
Turning to Wall Avenue, TSLA has a Average Purchase consensus ranking primarily based on 19 Buys, six Holds, and 5 Sells assigned previously three months. The common Tesla value goal is $310.29, implying 1.2% upside potential.
Conclusion: Ought to You Think about Tesla Inventory?
If you happen to’re contemplating shopping for and even simply holding Tesla inventory, you’d higher be on board with Musk’s imaginative and prescient for the way forward for his firm. It seems like he’s ready to step by step however relentlessly morph Tesla right into a robots-first, cars-second sort of enterprise.
Not everyone seems to be on board with this – however then, Musk’s conception of EVs on America’s roadways in all probability sounded far-fetched 20 years in the past. So, the billion-dollar query is: Are you able to run with the robots and be a part of a high-conviction however controversial revolution?
Musk modified the course of historical past as soon as already, and there’s a good probability he would possibly do it once more with Optimus – and maybe, the people who invested early in Tesla inventory can get wealthy whereas the robots do the entire work.