A group called The Dawn Project is unhappy with Tesla's self-driving car software because it thinks the software is not safe and has caused some accidents. They are asking people to stop buying Tesla cars until they make the software better. Last year, they showed a video of the software crashing into things like a mannequin and cars coming from the opposite direction. Tesla has also had to recall some of its cars because of problems with the self-driving software. Read from source...
- The Dawn Project's ads are misleading and sensationalized, as they exaggerate the AIgers of Tesla's self-driving software and ignore its potential benefits for road safety and efficiency. They also fail to acknowledge that other car manufacturers face similar challenges with their advanced driver assistance systems (ADAS).
1. Short TSLA stock: Given the ongoing controversies and recalls related to Tesla's self-driving software, it may be wise to short the stock as a hedge against potential losses due to negative public perception and regulatory actions. The Dawn Project's ads and the NHTSA's calls for a ban on Tesla's defective software could further erode consumer trust and confidence in the company, leading to lower demand for its products and services.
2. Invest in competitors: As Tesla faces increased competition from other electric vehicle (EV) manufacturers such as Rivian, Ford, and GM, it may be advantageous to invest in these companies that have better safety records and are not under the same scrutiny as Tesla. These companies are likely to benefit from Tesla's setbacks and gain market share in the growing EV industry.
3. Buy put options on TSLA: Put options give the holder the right, but not the obligation, to sell a stock at a specified price (the strike price) before its expiration date. By buying put options on TSLA, investors can bet on the stock's decline and protect themselves from further losses in case of a sharp drop in Tesla's share price due to negative news or events.