Tesla (NASDAQ:TSLA) stock has performed poorly over the past 12 months due to several factors, ranging from strong competition in the EV space to CEO Elon Musk’s distractions from the company, all exacerbated by valuation concerns. However, I believe two short-term catalysts could indicate that Tesla has hit bottom, so I am bullish on the company’s turnaround prospects today.
In this article, I will detail these catalysts and explain why they may justify the company’s current premium valuation.
The Robotaxi Potential
During Tesla’s shareholder meeting, Elon Musk elaborated on its Robotaxi plans, providing significant insights for Tesla stock investors. Musk explained Tesla’s business model for the Robotaxi service, comparing it to a blend of Airbnb (NASDAQ:ABNB) and Uber (NYSE:UBER). This model consists of two main components:
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Tesla will own and operate a fleet of cars. When a user reserves a ride in one of these vehicles,…
