TLDR
- Tesla stock rises 0.2% in premarket trading to $347.60 on robo-taxi expansion hopes
- Elon Musk’s new compensation package worth up to $1 trillion if performance targets met
- Company launches TeslaAI Weibo account in China, gaining 12,000+ followers quickly
- Chinese competitors like Unitree and X Square Robot secure major funding and valuations
- Global humanoid robot market projected to reach $38 billion by 2035
Tesla shares edged higher Tuesday morning as investors focus on the company’s autonomous driving expansion strategy. The stock gained 0.2% to $347.60 in premarket trading.
Friday’s 3.6% surge followed Tesla’s proxy statement revealing Elon Musk’s massive new pay package details. The CEO could receive 425 million stock options representing 12% of outstanding shares.
Musk’s compensation hinges on ambitious performance milestones. The package requires Tesla to generate $400 billion in annual EBITDA to reach its maximum $1 trillion value.
Investors appear comfortable with keeping Musk as CEO despite the unprecedented pay structure. This confidence allows focus to shift toward Tesla’s business expansion initiatives.
Robo-Taxi Service Expansion Timeline
Tesla’s robo-taxi service currently operates only in Austin, Texas since its June launch. Safety monitors still occupy front passenger seats during all rides.
Musk projected the service could reach half the U.S. population by year-end. Additional city launches would likely provide positive catalysts for the $1.1 trillion market cap company.
The robo-taxi business represents a key growth driver as traditional EV sales face increasing competition. Tesla’s autonomous driving technology differentiates it from conventional automakers.
China Market Strategy Faces Local Competition
Tesla launched its TeslaAI account on Chinese social platform Weibo over the weekend. The account attracted over 12,000 followers within days of going live.
Initial posts showcased Optimus humanoid robots with the tagline “Accelerating Evolution.” Future content will highlight autonomous driving progress and Cortex supercomputer developments.
This social media push aligns with Tesla’s Master Plan Part IV emphasizing AI and robotics growth. Musk estimates 80% of Tesla’s long-term value stems from the Optimus robot project.
Chinese competition poses challenges for Tesla’s robot ambitions. Alibaba led a $100 million funding round for humanoid startup X Square Robot, which already sells to schools and hotels.
Unitree approaches a $7 billion IPO valuation after demonstrating advanced robot capabilities. The company won multiple World Humanoid Robot Games medals this summer.
Goldman Sachs forecasts the global humanoid robot market growing from $3 billion in 2023 to $38 billion by 2035. China controls approximately 40% of current robotics market share.
Tesla stock trades down 14% year-to-date but up 60% over the past 12 months. TipRanks consensus rating remains Hold with a $306.42 average price target.
