Bernstein believes that even if Tesla becomes the first company to be approved for L5 fully autonomous driving technology, the improvement in AI computing power may allow other companies to quickly catch up, leading to Tesla struggling to achieve excess profits. The value of Google's Waymo assets is largely underestimated, with its weekly 0.1 million trips potentially generating annual revenue exceeding 0.1 billion US dollars, and the annual revenue is rapidly increasing.
On Monday, October 21, analyst Nikhil Devnani and his team at Bernstein released a report stating that Tesla's Robotaxi is overvalued, while Google's Waymo is undervalued.
Bernstein is skeptical about whether Tesla can achieve absolute victory in the field of self-driving cars, believing Tesla lags behind other companies in cooperation with regulatory institutions. Even though it became the first company to obtain approval for L5 fully autonomous driving technology, the improvement in AI computing power may allow other companies to quickly catch up, making it difficult for Tesla to achieve excess profits.
On the other hand, Bernstein believes that Google's Waymo's assets are largely underestimated, with its weekly travel volume of 0.1 million trips potentially generating over $0.1 billion in annual revenue, which is also rapidly growing.
According to the report, Bernstein rates Tesla as 'underperforming' with a target price of $120 per share; and Google is rated as 'market perform', meaning analysts expect the company's stock performance to be in line with the large cap, usually not generating excess returns, but also not having significant downside risk, with a target price of $180 per share.
Is Tesla's Robotaxi overvalued?
Tesla's self-driving rental car Robotaxi officially unveiled on October 10 disappointed the market. The presentation lacked key details and avoided regulatory issues. Bernstein stated that the value of Tesla's auto business may not reach $200 billion.
Bernstein expressed doubts about Tesla's ability to achieve absolute victory in the field of self-driving cars. While they believe Tesla can achieve L5 fully autonomous driving technology, they are currently unsure if Tesla can surpass companies that are already delivering L4 highly autonomous vehicles, especially considering Tesla's lag behind other companies in cooperation with regulatory institutions in terms of compliance.
Bernstein also added that even if Tesla becomes the first company to be approved for L5 fully autonomous driving technology, the increase in AI computing power may allow other companies to catch up quickly, popularizing L5 autonomous driving technology, eliminating premiums, and making it difficult for Tesla to obtain excess profits.
Is Google's Waymo underestimated?
Bernstein stated that although Waymo is leading in the autonomous driving car market, the value of this asset is largely obscured due to a lack of transparency, as Google mixes Waymo with other diversified investment projects.
According to data released by Waymo, as of August, the weekly pay-per-ride trips for Waymo's autonomous taxi service in the USA have exceeded 0.1 million times, which could result in Waymo's annual income surpassing $0.1 billion, with annual revenue still rapidly growing. Currently, Waymo has offered paid autonomous taxi services in parts of the San Francisco Bay Area, Phoenix, and Los Angeles, and plans to launch the service in Austin and Atlanta next year.
Editor/rice
