Tesla's Robotaxi Event presents big upside for stock, firm says
Yesterday at 11:57 AM
Tesla’s Robotaxi Event is coming up soon, and one firm believes the company could showcase a lot of technology and other exciting things that present a big upside for the stock.
With the Robotaxi Event originally planned for August and now presently scheduled for October, analysts have had mixed reactions.
Some believe the delay is actually a good thing, while others have tempered their expectations in preparation for what could be a run-of-the-mill event that does not necessarily wow investors.
It is hard to believe that if Tesla does not come through with major developments, or even what is expected, investors won’t walk away with a lot of positive thoughts. The unveiling of the Robotaxi, along with an outline of plans, should be enough to give investors optimism about the future.
Apparent camouflaged Tesla Robotaxi prototype sighted at Warner Bros. Burbank
Tesla does not plan to utilize anything that other robotaxi companies are currently using, like geofenced areas of operation. It won’t be confined to a city, and it will be scalable immediately.
Pierre Ferragu of New Street Research asked CEO Elon Musk on the most recent earnings call:
“Do you think that scales like progressively, so you can start in a city with just a handful of cars. Then you grow the number of cars over time? Or do you think there is like a critical mass you need to get to, to be able to offer like a service that is of competitive quality compared to what like Uber would be typically delivering already?
Musk replied with a stern tone:
“I guess, I’m not conveying this correctly. The entire Tesla fleet basically becomes active. This is obviously — maybe there’s some number of people who don’t want their car to earn money. But I think most people will. It’s instant scale.”
Bank of America said in a note that the Robotaxi Event, if done correctly, has the potential to be a big catalyst.
Not only will the company’s showcase of Full Self-Driving advancements and even a potential demonstration of a driverless Robotaxi be enough to get shareholders excited, but BoA also notes that the company’s showmanship at these events usually has a positive impact on the stock.
The event is about three weeks away, and nobody truly knows what will occur. While the hype for the event is growing, and Musk has even agreed that it is the most significant unveiling Tesla will have since the Model 3, there is a lot of potential for things to go both ways, depending on what the company can showcase.
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