DoorDash Appoints Tesla AI Veteran to Board, Reinforcing Automation Strategy Amid Valuation Concerns

What happened

DoorDash announced the appointment of Milan Kovac, former Tesla VP of Optimus Robotics and Autopilot, to its Board of Directors, effective January 2026. This move aligns with the company's stated big bets on building an AI-native global technology platform and investing 'several hundred million dollars' in 2026 for automation initiatives to reduce per-order logistics costs. However, the DeepValue report highlights that DoorDash trades at elevated multiples (~106x P/E) and faces near-term margin pressures from a reinvestment cycle, regulatory headwinds, and integration risks from acquisitions like Deliveroo. Kovac's expertise in scaling engineering programs at the intersection of AI, autonomy, and robotics signals a deeper commitment to tech-driven efficiency, but it does not immediately alter the financial trajectory. Investors should note that this board addition is a strategic step, yet it doesn't mitigate the execution risks or high valuation embedded in current prices.

Implication

The board addition reinforces management's strategy to prioritize automation and AI, which could enhance long-term cost structures and competitive moat if executed effectively. However, it doesn't change the immediate financial outlook, including the planned 2026 opex ramp that may pressure EBITDA margins amid regulatory and labor cost challenges. Investors should view this as a positive signal for execution but must still monitor key risks such as GOV growth deceleration, ad revenue trends, and Deliveroo integration. The high valuation embeds aggressive growth assumptions, and any misstep in these areas could lead to significant downside, as highlighted in the report's bear scenario. Therefore, while strategically sound, this move doesn't warrant a change in the current sell or avoid recommendation, emphasizing the need for patience until concrete efficiency gains materialize.

Thesis delta

The appointment of Milan Kovac strengthens DoorDash's focus on automation and AI, potentially accelerating long-term efficiency gains in logistics and aligning with its reinvestment plans. However, it does not address core concerns about valuation, near-term margin compression from the 2026 investment cycle, or regulatory uncertainties that could impact profitability. Thus, the investment thesis remains unchanged, with DoorDash still considered a potential sell due to skewed risk/reward at current prices.