Prediction: Buying Tesla Stock Today Could Set You Up for Life

If there's one thing that's clear from Tesla's (NASDAQ: TSLA) second-quarter earnings report, it's that everything is riding on its full self-driving (FSD) system. As such, investors should view Tesla as a risky growth stock, albeit one that's favorably positioned in an end market that the rest of the automakers continue to chase and have invested billions in. Here's why FSD and Tesla's robotaxis are the key to understanding the investment proposition and why I predict their successful development could lead to huge returns for investors.There's no point tiptoeing around the elephant in the room. Tesla's sales this year have not been what management would have hoped for. Moreover, CEO Elon Musk is clear that Tesla could face "a few rough quarters" as relatively high interest rates make car-buying less affordable, and the removal after Sept. 30 of a federal tax credit of up to $7,500 for eligible electric vehicles (EVs) will negatively impact sales.As such, Tesla's sky-high valuation (it trades at 191 times Wall Street earnings estimates for 2025) is often used as a stick to beat the stock with. That's fair enough, and valuations always matter. Still, the key to the investment case has long been Tesla's potential to develop a highly lucrative stream of revenue from selling FSD and its robotaxi business.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool