Should You Buy Tesla Stock Before June 12?

Bram Berkowitz, The Motley Fool

Tue, Jun 3, 2025, 1:35 AM 5 min read

• Bloomberg recently reported that Tesla will launch its first robotaxis in Austin on June 12.

• The launch marks what could be the beginning of massive new business for Tesla.

• Investors have been very excited about this for a long time. Will it live up to the hype?

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Electric carmaker Tesla (NASDAQ: TSLA) has had an eventful year, with its stock experiencing wild swings as investors try to factor in the struggles in the core EV business, the actions and comments of its controversial chief executive, and the excitement around future initiatives like robotaxis to determine a fair price for the stock.

Speaking of robotaxis, Bloomberg recently reported that Tesla plans to launch a small group of robotaxis in Austin, Texas, on June 12, the beginning of what Tesla asserts will eventually be a massive new business and stream of revenue. The event could also give investors information regarding how effective Tesla's self-driving technology is.

Should investors buy Tesla now in anticipation of the June 12 announcement?

Tesla's core EV business has struggled this year, with the company only reporting 337,000 deliveries in the first quarter of the year, the lowest level seen in over two years. Whether due to CEO Elon Musk's involvement with politics, which seems to have come to an end, or increased competition, sales have struggled. Recent reports don't indicate much improvement in the second quarter of the year. Further, Tesla stock still trades at an extremely high multiple.

The stock has been propelled by the company's future initiatives, which include the upcoming launch of cheaper EVs, robotaxis, and the Optimus humanoid robots that will supposedly be able to complete household chores. Robotaxis are the most exciting on tap, with the Austin launch reportedly just days away. According to media reports and analyst research reports, the Austin robotaxi launch will feature 10 to 20 Tesla Model Ys with human supervisors, and the vehicles will be geofenced, meaning they will only operate in certain areas of Austin.

However, Musk has also said there could be 1,000 units on the road within a few months. There are varying reports and data about how well Tesla's unsupervised full self-driving (FSD) technology works. Users have now tested FSD over billions of miles, and Tesla's management team claims FSD is safer than human driving.

However, some have suggested that the FSD technology is not as strong as Musk claims. Morgan Stanley analyst Adam Jonas recently told investors in a research note, "As is typical for highly anticipated Tesla events, we would keep expectations well contained for the (reported) June 12th Cybercab launch event in Austin."