Rival Shows the Drawback in Tesla's Driverless Tech Strategy. Are They Right?
Key PointsAnalyst believes the majority of Tesla's valuation is driven by its robotaxi business potential.
Adam Jonas of Morgan Stanley has valued Tesla using a sum-of-the-parts model, highlighting that autonomous driving technology and the robotaxi business account for 41% of the company's valuation. In contrast, Tesla's core automotive and energy business make up 34%, while the potential of the Optimus robot represents 25%. Consequently, when rival Waymo of Alphabet, which owns both Google (NASDAQ: GOOG) and Alphabet (NASDAQ: GOOGL), points out potential drawbacks in Tesla's driverless technology strategy, investors should take notice.
Recently, Waymo's co-chief executive officer, Dmitri Dolgov, seemingly took aim at Tesla during a speech at Y Combinator's Startup School. While he didn't specifically mention Tesla by name, Dolgov argued that camera-only self-driving technology could be deemed "weak sensing." He further suggested that this strategy might initially develop rapidly but would eventually face limitations, ultimately reaching a lower ceiling of capability and performance in the long term.
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