Recently, Tesla (TSLA) CEO Musk said on social media that investors who are skeptical of Tesla's self-driving (FSD) technology are advised to sell their holdings as soon as possible. It is understood that Tesla will hold a driverless taxi launch conference on the 10th of this month, and this statement has triggered widespread discussion. The FSD car is regarded as Tesla's core innovation in the field of FSD and an important product since the launch of the Optimus Prime humanoid robot in 2022.

Analyst Dan Ives believes that this event may become a "critical moment" in Tesla's development, not only the launch of new products, but also an important signal for the company's FSD technology prospects. Although there are still doubts in the market, once FSD technology really breaks through, Tesla's cars can achieve fully automatic driving through a software update. Musk believes that this will put Tesla in an absolute leading position in the market and may even cause the company's market value to soar to 5 trillion US dollars.

If the FSD plan is successful, Tesla's profit model will be completely transformed, and car sales revenue will no longer be the main source. Instead, it will be replaced by licensing fees and subscription revenue based on FSD technology, which will provide stable and predictable recurring income. Will McDonald, chairman of Corestone Capital, pointed out that this revenue model is very attractive to institutional investors because it has stronger long-term growth potential than traditional one-time transactions.

Tesla's driverless taxi plan will make it a strong competitor to shared travel leaders such as Uber and Lyft. Tesla plans to launch a car that does not require human driving at all, and may not be equipped with a steering wheel or pedals, thereby significantly reducing operating costs. This design not only provides consumers with lower prices, but also increases the company's profit margins. As consumers become more accepting of driverless technology, this car will fill the supply shortage in the shared travel market and further consolidate Tesla's position in the travel market.

As the launch conference approaches, the market's optimism about Tesla is gradually heating up. The Federal Reserve's two-code interest rate cut in September will help lower car loan interest rates, thereby increasing consumers' willingness to buy cars. Although Tesla's profits have declined slightly this year, its stock price has remained stable, indicating that investors are confident in future development.

At present, the market's profit expectations for Tesla in 2024 are the same as in 2023, with earnings per share estimated at about $3.12, far lower than the record of $4.07 in 2022. Despite this, Tesla's stock price is still more than 80 times its expected earnings next year, showing investors' high expectations for Tesla's long-term development. DataTrek co-founder Nicholas Colas described Tesla's stock as a "belief stock", reflecting the market's strong trust in Musk.

However, some investors are cautious about the conference. Well-known Tesla bulls such as Future Fund Managing Partner Gary Black warned that there is a precedent of "buying rumors and selling facts" at Tesla's conferences in the past, and the market may see profit-taking after the conference. But Musk does not seem to think this will affect future development. He mentioned that Tesla has made major design changes in the process of postponing the conference and hinted that more "other things" will be shown at the event.

In addition to the driverless taxi, Musk may also launch the second Tesla sports car, the Roadster, at the conference, which is expected to attract high-end consumers and further expand Tesla's product line. In addition, the words "We Robot" are printed on the invitation to the event, which may imply that Musk will show the latest version of the Optimus Prime humanoid robot, further promoting Tesla's transformation into the field of artificial intelligence and robotics.