Breaking News for Tesla Investors A Billion Reasons to Follow Tesla Stock

Nikola Tesla (1856-1943), Serbian inventor and engineer (NASDAQ: TSLA)One of the most volatile stocks, the company is a pioneer in electric vehicles (EVs) and a pillar of the sustainable energy movement.

irregularityStandard & Poor's 500Indices andNasdaq ResonanceTesla can't seem to find its mojo as the index continues to approach record levels. So far this year, Tesla's stock price has plummeted 30%, and the company's outlook is bleak.

As usual, Tesla's chief executive officer, Elon Musk, gave investors some reason to cheer, distracting them by presenting an update on the company's self-driving technology.

A few days ago, Mass resonance posted on the X social media platform (formerly known as Twitter) that Tesla's Fully Self-Driving (FSD) technology had collected data on over 1 billion miles of driving. Let's break down why this is important and what it means for the company's future.

Enter the Dojo.

Tesla cars are equipped with cameras and sensors that constantly collect a variety of data. These include neighborhood and city maps, driving conditions in different areas, and more.

In turn, this data is fed directly to a supercomputer called Dojo, a neural network that processes all this driving data to help refine the company's self-driving software.

Tesla isn't the only company pursuing autonomous driving.General Motors (car company)respond in singingAlphabetGM has also invested heavily in the technology. The latter's Waymo subsidiary has made some significant progress in self-driving capabilities, while General Motors has faced some recent setbacks.

Many on Wall Street believe that Tesla is a leader in autonomous driving. The company has more data than its competitors and has been able to make big changes to FSD over the years.

But even so, the idea of self-driving cars does seem like science fiction. As tempting as it may be, will self-driving cars ever become a reality?

How far away is fully autonomous driving?

Autopilot has several key selling points. First.Uber (Internet company)maybeLyftRide hailing platforms such as these could theoretically benefit from this technology as it replaces the cost of human drivers in the long run. The same idea applies to delivery services, includingDoorDashmaybeInstacartThe

If a company can crack the code of the big曏 self-driving car, it can issue a technology license to car makers. A fleet of robotic rental cars could then dominate the roads and have a major impact on the labor market.

At the same time that Muskie announced that his company had collected more than a billion miles of FSD data, he also claimed on X that robotic taxis could be coming soon. While it's not entirely clear if Tesla's robotic axles will hit the road this year, the cryptic message resonantly posted by Mas resonant on social media suggests that something big could be coming in the summer.

He has previously announced certain ideas or updates for Tesla on social media. In addition, his intense management style has caused the company to miss many deadlines.

Is Tesla Stock Worth Buying Now?

While the prospects for FSD and robotaxis are exciting, investors should not buy Tesla stock on speculation that Tesla will launch such new products or services later this year.

Instead, it's important to look beyond the horizon and consider the issue from a broader perspective. Although the company's core electric car business is huge, growth stalled last year. That's not surprising, given the unusually high inflation and rising interest rates that have been plaguing the economy. As an automaker, Tesla is sensitive to high interest rates.

That said, Tesla has done an excellent job of investing in high-growth opportunities, thanks to its continued free cash flow and $29 billion of cash on its balance sheet. That is, the company's pursuit of artificial intelligence (AI) has been neglected as other large-cap tech companies have come into focus.

I wouldn't be surprised if we get our first look at robotic axes this summer. But more importantly, Tesla is gathering more data to develop its Autopilot software faster than its competitors. So in the long run, I think the company is better positioned than its peers to profit from Autopilot when the time comes.

The company's price-to-sales ratio of just 6.2 is well below its 10-year average and a far cry from its highs of a few years ago. While FSD's IPO is still a mystery, I still think it's a good time to grab some Tesla stock.

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Alphabet executive Suzanne Frey is a member of The Motley Fool's board of directors. adam Spatacco owns shares of Alphabet and Tesla. the Motley Fool holds recommended positions in Alphabet, DoorDash, Tesla, and Ubiquiti. the Motley Fool recommends the following options: GM 2025 $1.25 Call Options Long. the Motley Fool has a disclosure policy. The Motley Fool recommends General Motors, and recommends the following options: General Motors January 2025 $25 Call Options Long.The Motley Fool has a disclosure policy.

Breaking News for Tesla Investors: 1 Billion Reasons to Watch Tesla Stock was originally published by The Motley Fool.