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Barchart
Larry Ramer

Why Tesla Stock Probably Won’t Get a Big Boost From the Roadster

Tesla (TSLA) CEO Elon Musk recently stated that the company's upcoming EV, Roadster, will be “sentient.” Taking a look at Dictionary.com's definition, “sentient” means “having the power of perception by the senses; conscious” or “characterized by sensation and consciousness.” The Roadster, like all EVs equipped with Tesla's driving-assistance systems, will likely have some ability to perceive its environment and react accordingly. Additionally, Musk reported that the super car EV would be able to perform some “tricks,” suggesting that these functions will be fun to watch but not practical. So the Roadster probably can carry out some fairly useless but showy functions that Tesla's other EVs cannot deliver.

But given the meaningful limitations of Tesla's driving-assistance products and the many past targets set by Musk that Tesla has not come close to meeting, it would be very surprising if the Roadster can carry out important functions that the robotaxis of other firms, such as Alphabet's (GOOG) (GOOGL) Waymo, cannot perform. Consequently, the niche Roadster is unlikely to be a big game changer for TSLA stock.

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