Tesla Inc (NASDAQ:TSLA) got a boost in its share price on Monday as CEO Elon Musk made a big promise to consumers. Musk said in a tweet that there will be an update to the Autopilot software coming in August, and that with the new version the company “will begin to enable full self-driving features.”
The stock was up 4.5% by the day’s close as investors were excited about what the update will mean and if it could offer a solution and prevent the crashes we’ve seen Tesla cars be involved in lately.
The danger that we’ve seen already is that consumers are in many cases assuming that the cars are completely self-driving and don’t require any human intervention, which up until now has not been the case. Unless the update will make the vehicles completely automated, then it’s likely we’ll continue to see issues arise.
With nothing more than a tweet to go on, investors will have to wait and see just how automated the vehicles will be after the new upgrade. We’ve already seen several crashes this year involving self-driving vehicles, making safety a big concern in the industry.
Tesla’s stock has struggled this year, as year-to-date it has risen just 2%. However, it’s still an expensive buy as it is valued at more than 12 times its book value and the company is still nowhere near turning a profit.
If this latest software update can alleviate concerns that investors have about the company’s vehicles, then we could see a lot of bullishness return to the stock.
This article provided by NewsEdge.