Tesla's margins will be 'a sideshow' compared to robotaxi

Tesla (TSLA) has reported mixed second-quarter earnings, missing adjusted earnings expectations but beating revenue forecasts. Brett Winton, Ark Investment Management (ARKK) chief futurist joins Asking for a Trend to discuss the implications of this earnings report.

Despite Tesla's earnings miss, Winton argues that "the real story" lies in the company's potential to deliver on its robotaxi ambitions. He suggests that if Tesla succeeds in this venture, factors like gross margins and delivery numbers would become "a sideshow" in comparison.

Winton calls robotaxis "an inevitability," driven by rapid advancements in artificial intelligence. He cites Tesla's massive data center and its current fleet of vehicles as key advantages, leading him to believe "they're gonna be able to deliver autonomous driving".

Regarding the financial impact, Winton anticipates a robotaxi pilot could emerge between late 2024 and early 2025. He predicts this would transform Tesla's business model from "one-time sales to recurring revenue," describing it as "a business transformation the likes of which the world has never seen".

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This post was written by Angel Smith