What Happens If Tesla's Robotaxi Service Flops?

For years, (NASDAQ: TSLA) has been touting its now-nascent Robotaxi service as more than a ride-hailing app. It's being marketed as a self-sustaining network of autonomous vehicles that the company asserts will generate billions of dollars of high-margin revenue. Yet the gap between vision and execution in full-self-driving technology is vast.

If the Robotaxi service underdelivers, it would not necessarily signal the end of Tesla. Rather, a flop like this would expose the fragility of the company's valuation, which is already pricing in future game-changing successes from artificial intelligence (AI).

Building fully autonomous systems is not simply a function of software toggles. This type of technology is an engineering breakthrough layered with puzzles. Even the most advanced driver-assistance systems falter when they encounter edge cases from time to time.

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Source Fool.com