Tesla gave an update Saturday on its humanoid robot, known as Optimus, releasing a video showing the product short objects based on color and claiming it is learning to adapt to its environment in the same way as the EV giant's latest version of Full Self-Driving (FSD). Tesla stock edged up Monday afternoon.
Chief Executive Elon Musk took to X, formerly known as Twitter, calling the demonstrations in the short video of the Tesla bot "progress." However, it remains to be seen if investors take Tesla's humanoid robot seriously.
The video shows the robot perform yoga stretches and sort objects, and claims the Tesla bot's neural network is now being trained end-to-end in the same way as Tesla vehicle's FSD. The sped-up video appeared to have certain scenes clipped together
Tesla stock pared early losses, edging up 0.9% to 247.04 Monday during market action. The Tesla bot was first "unveiled" on Aug. 19, 2021, during the company's Artificial Intelligence Day event.
Musk has recently highlighted he looks at Tesla as an AI and robotics company.
"Almost all of Tesla's value long-term will be from AI & robots, both vehicle & humanoid," Musk posted to X on Sept. 11.
This comes as Morgan Stanley analyst Adam Jonas recently hiked his price target by 60% to 400, citing potential huge gains from Tesla's Dojo supercomputer. In a 40-page report, Jonas wrote Tesla's Dojo, the supercomputer built to train the company's FSD technology, could play a key role in raising the company's valuation as much as $500 billion.
Tesla Stock
On Friday Tesla stock dropped more than 4% to 244.88. In total last week, Tesla tumbled nearly 11%, dropping noticeably below its 50-day line.
The shares also round-tripped all of the prior week's gains spurred by Morgan Stanley's bullish analyst call.
Tesla stock still has a proper cup-with-handle base, giving it a 278.98 buy point, according to MarketSmith analysis.
Meanwhile, analysts maintain that the United Auto Workers strike against Ford, General Motors and Stellantis is good news for nonunion Tesla.
However, with Tesla's third quarter also soon coming to an end, Wall Street has revised its view on vehicle deliveries. The consensus view is Tesla will deliver 461,000 vehicles in Q3, down from the previous view of 468,000, according to FactSet. That would also be below Q2's record 466,140.
However, some analysts recently released notes stating Tesla's Q3 total will come in well below 460,000 delivered vehicles.
Tesla stock ranks sixth in the 35-stock IBD automaker industry group. The S&P 500 component has a 95 Composite Rating out of 99. Shares have an 90 Relative Strength Rating and its EPS Rating is 93 out of 99.
Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.
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