2022 was a harsh year for Tesla, with the share price plunging by a horrifying 65%. However, 2023 sees a strong comeback, with the share price hiking up 130% since January. Although a drop occurred on Friday with shares down 1.2%, the shares were still trading at US$248.50 apiece. Despite this improvement, there are yet to retake their November 2021 highs of over US$407 per share. But, the upward trend seems promising.
Now, there’s talk about Tesla’s latest AI breakthrough. This could potentially propel Tesla’s share price to incredible heights. For years, Elon Musk has poured resources into AI technology. Now, there may be a significant return on that investment.
On 25 August, Musk showcased the company’s latest tech marvel. He filmed himself in the driver’s seat of a Tesla Model 3. For about 45 minutes, the car performed various common maneuvers like parking and stopping at lights. What was surprising, however, is that Musk didn’t touch the steering wheel. He just held his phone. This amazing feat was thanks to Tesla’s full self-driving program, version 12 (or v12).
It’s still the early days though. Full autonomy, or Level 4 or Level 5, is the ultimate goal. AI technology is the key. The v12 uses AI to determine the best course of action. This AI navigational system is the result of crunching hours of human driver and vehicle behavior data.
This breakthrough can open the door for incredibly lucrative opportunities like autonomous robotaxis. Though there’s work left, Musk’s self-driving video demo showed we’re not far off. The Tesla share price was in the US$10 to US$17 range when Musk first proposed the idea of robotaxis in 2016.
Musk has big plans for these robotaxis. He believes the owners of fully autonomous Teslas could have their cars work as robotaxis when not in use. The earnings would then split between the owners and Tesla.
The financial services company, RBC, estimates that robotaxis could make up 70% of Tesla’s value. All these possibilities, spurred by advancements in AI, could speed along the Tesla share price for a prosperous future.
