Tesla Inc. shares dropped on Tuesday after zooming more than 8% in the previous session, when they got a boost from the company’s robotaxi launch.

Tesla clearly has the potential to justify its sky-high valuation through new growth opportunities like self-driving cars. Over the next 10 years, the company can regain its growth trajectory as these new opportunities defray weakness in its core automotive operations.

Tesla (NASDAQ: TSLA) stock has surged by over 10% and closed up 8.2% after finally launching robotaxis. This was a long-awaited event that came after multiple delays. The launch itself was “tentative,” and Texas lawmakers requested Tesla to delay its launch until new regulations pertaining to autonomous vehicles take effect on September 1, 2025.