Eight days from now, on June 12th, Tesla is scheduled to launch their long-awaited (and I’m talking years) Robotaxi service. The eventually success or failure of this concept could be one of the most important events in the corporation’s history, since Mr. Musk has devoted so much of the company’s and resources toward the success of self-driving electric taxis.
As many ups and downs as TSLA has had over the years, the price of the stock right now is the same as it was in October 2021. Forty-four months and 0% change – – incredible. During those years, the stock has bounced rather predictably between its Fibonacci levels, although at the moment it appears to be in somewhat of a no man’s land.
I personally haven’t touched the stock in either direction for as long as I can remember, although personally I hope for the best for them, since I’m a long-time fan and owner of their cars.
Recently, partly due to the foray into politics that Tesla’s CEO took, the stock took a beating and then partially recovered. It’s actually impressive the stock has held up as well as it has, considering the severe drop in sales they have experienced, particularly overseas.
Lest one think that technology cannot upend an industry, allow me to direct your attention toward the price of taxi medallions. Remember those? They gave you the right to drive a taxi in New York City, and they were so valuable and important that there was actually a secondary market in which they were bought and sold.
In the early 2000s, the value of these medallions got up to a million dollars. I remember there was even a public company whose sole purpose in life was to lend money to those who wanted to buy medallions. Once UBER came along, however, these things crashed to near worthlessness.
It’ll be interesting to see what the world of taxis, Uber, and Tesla looks like two years from now, since by then it should be pretty clear what technologies were transformative and which didn’t mean a thing.
