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Tesla Stock Catalyst: New FSD Model to be Released by End of September
ByAinvest
Wednesday, Aug 6, 2025 4:13 pm ET1min read
Tesla plans to release a new Full Self-Driving model with improved decision-making and real-time perception by the end of September. This could unlock new revenue streams, including robotaxi services, and advance the company's AI future. Despite a sales decline, billionaire CEO Elon Musk's update is largely positive for TSLA stock, but the valuation concern and continued sales decline keep Wall Street analysts from turning positive on the stock.
Tesla (TSLA) remains in focus following billionaire CEO Elon Musk's announcement that the company is training a new Full Self-Driving (FSD) model with approximately 10 times more parameters and significant improvements in video compression. This new model, slated for release by the end of September, is expected to offer better decision-making and real-time perception, key advancements for autonomous capabilities [1].The announcement is largely positive for TSLA stock, as it underscores Musk's commitment to the company's AI future. Improved FSD technology could unlock new revenue streams, including robotaxi services, and potentially drive future growth. However, Tesla's stock has been volatile in recent months, with a 40% increase from its April low but a 10% decline from its recent high [1].
Despite a recent sales decline, famed investor Jim Cramer remains bullish on TSLA shares for the long term, noting that the tech is worth more than its current selling price. He believes Tesla is transitioning into a tech company, but the stock's forward price-earnings ratio of over 250x indicates a high valuation [1]. Wall Street analysts, however, remain cautious, with a consensus rating of "Hold" and a mean target of roughly $300, indicating potential downside [1].
The new FSD model's release could be a significant catalyst for Tesla's stock, but the company must address ongoing sales declines and high valuation concerns to turn around Wall Street's outlook.
References:
[1] https://www.barchart.com/story/news/33933499/dear-tesla-stock-fans-the-next-big-tsla-catalyst-could-be-coming-in-september
[2] https://seekingalpha.com/news/4480283-tech-voices-teslas-new-fsd-apollo-stream-data-openais-fed-push
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