Tesla’s Robotaxi Approval Fails to Lift Stock Amid Margin Pressures
Tesla shares slid 2.6% to $398.38 despite securing Arizona's regulatory nod for paid robotaxi services on November 17. The divergence highlights investor concerns over compressed profitability as the EV Maker navigates aggressive price cuts and heavy AI investments.
Third-quarter revenue reached a record $28.1 billion with 497,000 deliveries, but net income plunged 37% to $1.4 billion. Operating margins halved to 6% from 11% year-over-year, reflecting the cost of growth at scale in a competitive EV market.
Arizona's Transportation Network Company permit allows Tesla to deploy safety-driver-equipped vehicles for ride-hailing, positioning it against Waymo's existing driverless service in Phoenix. The limited authorization underscores regulatory hurdles facing full autonomy ambitions.
