On April 28, in his Bull Case for Tesla, Hammer wrote: The bet is that Musk will tire of Trump and go back to his company. That alone would tack 15% onto TSLA stock price.
The stock closed at $285 that day.
Hammer also wrote:
If you have a five-year time line you should buy now. If you are cherry picking a trade, wait until it hits the 200-day moving average and drops back a bit and then buy.
This is very likely the last major selloff you will get before AI and robotics create the biggest productivity boost since the Industrial Revolution.
Tesla shares hit the 200-day moving average the next day, pulled back over the next week to $273, and took off…
Currently hitting $345, Hammer’s perfectly mapped out trade has netted $72 a share, a solid 26% gain in less than a month.
I followed up on Hammer’s bullish call for Tesla on May, 8: What’s important is that Musk is out of Washington and back where he belongs at Tesla. And just in time to focus on a gamechanging event…
The stock was $285 when I chimed in. Either way, you had the opportunity to catch a solid move for Tesla stock. And it’s highly likely there are higher prices still coming for Tesla stock, because that “gamechanging event” is now right around the corner…
The Only Thing That Matters…
You probably know that Tesla plans to start testing its Robo-Taxi service in Austin, Texas in June. CEO and Founder is already on the promotional circuit, telling CNBC that “the only thing that matters long term is autonomy and Optimus.”
Optimus is Tesla’s humanoid robot. Autonomy refers to the Robo-Taxis…
Wedbush analyst Dan Ives calls the Austin Robo-Taxi launch a “watershed” moment. And that’s not just because Tesla’s plan is to go from a dozen or so Robo-Taxis at launch to a few thousand after a couple months…
The deeper reason it’s a watershed moment for Tesla has to do with Musk’s larger grand for his Full Self Driving (FSD) system. Basically, every Tesla on the road can be a Robo-Taxi once FSD is fully unlocked…owners could pull into their driveway after work, then turn their car loose on the Tesla Robo-Taxi network to earn some extra loot.
Tesla sold 633,000 cars in the U.S. in 2024. That’s a lot of potential Robo-Taxis driving city streets, where 80% of the U.S. population lives. And with Tesla’s new Robo-Taxi that’s designed without a steering wheel expected to cost around $30,000, cost per mile could fall to $0.20. That’s a huge savings over the current average cost of car ownership around $1 a mile.
“We Can’t Screw Up…”
During a meeting with Morgan Stanley analysts, Musk reportedly said: "Plenty of tele-ops to ensure safety levels – we can't screw up.."
This means that Tesla’s first Robo-Taxis in Austin will be remotely monitored, presumably with operators ready to step in if the cars get glitchy. In other words: training wheels. And that might sit too well with some investors…
I think it’s smart. Like Ives said, Tesla’s Robo-Taxi launch is a watershed event. And like Musk said, they can’t screw it up. The more potential problems Tesla can account for,the better…
It should reassure investors that the stock is less likely to tank if something goes wrong.
After the run from $272 to $350, it makes sense to watch for some kind of pullback for Tesla shares. Still, there’s upside for Tesla.
Take care, I’ll talk to you soon.
Briton Ryle
Chief Investment Strategist
Outsider Club
X/Twitter:https://twitter.com/BritonRyle
