Tesla (NAS100:TSLA) shares were higher after founder Elon Musk said the company was testing some new full self-driving (FSD) technology.
TSLA – Daily Chart
TSLA shares have underperformed the large-cap tech market, but a breakout around the $350 level could reignite a bull move in the stock.
Tesla was back on investors’ minds after Musk tweeted that the EV maker is “training a new FSD model with 10x params and a big improvement to video compression loss”. According to his latest post, the company plans to release the new model by the end of September.
Tesla shares have underperformed the large-cap tech sector due to weaker sales at the company. Musk understands that while it may be hard to recoup some of those gains, there are new revenue streams available in areas such as robotaxis.
According to the latest sales data, Tesla’s new car sales declined by another 55% in the United Kingdom and Germany last month. Competition has been rising as rivals catch up to EV tech, and he also hurt the brand with his alliance with U.S. President Trump.
Musk’s latest announcement came after Tesla granted him a new $29 billion share award after a court voided his previous $50 billion compensation. The latest award was given to secure Musk in the leadership role as the company moves toward robotics and AI.
“While we recognise Elon’s business ventures, interests, and other potential demands on his time and attention are extensive and wide-ranging … we are confident that this award will incentivize Elon to remain at Tesla,” the company’s board said in a regulatory filing.
Many analysts are seeing a future for Tesla as a tech company that outgrows vehicles as its main revenue driver. With a price/earnings ratio of 185x earnings, it is still more highly valued than the likes of Nvidia, which has a P/E ratio of only 50x. But with Musk at the helm, that premium is likely to remain in place as investors wait for new developments.
