Benzinga - by The Arora Report, Benzinga Contributor.
Tesla Inc. Robotaxis After the close on Friday, Musk tweeted “Tesla (NASDAQ: TSLA) Robotaxi unveil on 8/8.” Musk did not provide any clarification or details. Musk is known for cryptic tweets.
He often sets aggressive targets that are often late by years. Based on Musk's history, even if he unveils Tesla Robotaxis in August, robotaxis may not become commonplace for a long time.
Regulatory Issues Robotaxis are not entirely in Musk's hands. There are serious regulatory issues. The government often lags behind technology.
Impact On UBER Uber Technologies Inc (NYSE: UBER) used to have its own robotaxi division, but after spending hundreds of millions of dollars, Uber closed it. Even the specter of Tesla Robotaxis coming can have a negative impact on UBER stock unless Uber teams up with Tesla or another robotaxi provider.
As a disclosure, UBER is in the Core ZYX Buy Model Portfolio long from $25.58.
TSLA Opportunity Robotaxis, if they are close, will reverse the downward momentum in TSLA stock and provide an opportunity to buy TSLA stock.
Prudent Course Of Action For UBER Stock Since there are such nice profits in UBER stock long from $25.58, it is prudent to take small partial profits in UBER.
The long term target for UBER is $107 - $116.
Consider holding the rest of the UBER position.
Other Opportunities Robotaxis will provide opportunities on both the long and short side in many other companies.
AI Stocks Robotaxis will have an impact on popular AI stocks such as NVIDIA Corp (NASDAQ: NVDA), Advanced Micro Devices, Inc. (NASDAQ: AMD), Alphabet Inc Class C (NASDAQ: GOOG), Alphabet Inc Class A (NASDAQ: GOOGL), Arm Holdings PLC - ADR (NASDAQ: ARM), Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: TSM), Applied Materials, Inc. (NASDAQ: AMAT), ASML Holding NV (NASDAQ: ASML), and Micron Technology Inc (NASDAQ: MU).
What To Do Now Those in UBER stock may consider taking partial profits.
Those not in UBER stock may consider waiting for a dip in the buy zone.
Those interested in TSLA stock may stay tuned.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever Generate Wealth Newsletter.
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