Wall Street analysts are weighing what they expect to hear from Tesla (TSLA) at its “We, Robot” event Thursday night.
While most people don’t expect fully functional robotaxis to be deployed immediately, there are things CEO Elon Musk and Tesla can do to paint a picture of self-driving in the next five or 10 years. It is as follows: It’s important. For example, potential leaks have already surfaced suggesting Tesla could enter into a robot delivery deal with DoorDash. (Yahoo Finance could not confirm these reports.)
Morgan Stanley’s Adam Jonas, who named Tesla a “number one choice” in the auto industry, nevertheless advised customers to “appropriately manage their expectations” for the event.
Most likely to be on display will be a demonstration of the latest version of the FSD (fully self-driving) software and a demonstration of a fully autonomous “cybercab” on a closed or semi-closed course, Jonas wrote last month. . However, Jonas said in a recent note last week that investors may learn more about how cybertaxi, or robotaxis, will be rolled out.
Tesla’s supervised and fully autonomous driving demonstration. (Tesla YouTube Channel) (Tesla YouTube Channel)
“We believe Tesla will offer a “dual” approach to self-driving ridesharing: (1) fully autonomous app-based cyber taxis and (2) “supervised” self-driving/FSD ridesharing services. I look forward to it. “We think the latter has the most traction or the most scope to surprise investors, at least in the short term,” Jonas said.
Cybercabs (vehicles envisioned without steering wheels or pedals) may be a natural fit for robotaxis, but Jonas believes that in combination with FSD and Tesla’s upcoming ride-sharing mobility app, they could take the road to the next level. We believe it is an existing Tesla vehicle that will be running. , owners of these Tesla EVs will be able to place their vehicles on Tesla’s rideshare service. The real game changer, he said, is unlocking the potential of these vehicles.
It’s easy to imagine Tesla’s deal with DoorDash to deliver restaurant takeout as part of this service.
Jonas and Morgan Stanley are overweight on Tesla stock heading into the event, with a price target of $310.
Other analysts believe that the announced CyberCab could actually be the model or basis for the new Tesla passenger car, the long-promised “next generation” vehicle.
“For Robotaxis Day on October 10th, we expect to see the unveiling of the ‘CyberCab’ at the venue, (and) some type of robotaxis demo…Additionally, Tesla will be announcing the next SOP (start of production). ), the company is expected to announce a new low-cost vehicle (a “Model 2” or a cheaper, smaller version of the Model 3),” Deutsche Bank’s Edison Yu wrote in a note.
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Yu was referring to Tesla’s next-generation sub-$30,000 EV, which is confirmed to be released later this year and will open up new buyers in Tesla’s world.
Tesla’s Product Roadmap from 2024 Shareholder Meeting Presentation (Tesla) (Tesla)
Mr. Yoo, who has a “buy” investment decision on Tesla and a price target of $295, also said that the hurdle to surprise people on the street is high and he is likely to be a “selling news” type, so he is “tactically cautious” at this event. He advises customers to become reactions are possible.
CFRA’s Garrett Nelson also believes a cheaper Tesla EV will appear alongside the CyberCab. He believes Tesla has plans to create a robotaxi fleet using the CyberCab and other Tesla EVs equipped with FSD software, but is skeptical about how realistic the timing of this venture is. be.
“We believe this (robotaxis vehicles) is still years away from becoming a reality, and many technical hurdles, safety tests and regulatory approvals remain in the way,” Nelson said last week. said.
A preview of ride-hailing features coming to Tesla’s app. (Tesla) (Tesla)
Nelson believes Tesla is “a long way from achieving self-driving levels,” which include the ability to perform all safety-critical driving functions and monitor road conditions throughout the trip.
Nelson, who has a “hold” rating on Tesla and a price target of $240, said the key issue in Tesla’s bull market is that investors are looking past the company’s short- to medium-term issues, such as weak EV sales, and expect the company to continue. I think it’s a matter of whether you do it or not. This is to place more emphasis on long-term opportunities such as autonomous driving and the introduction of robotaxis.
Finally, in a note published late last week, Wedbush analyst Dan Ives believes Thursday’s event will fully reveal Tesla’s long-term vision.
While Ives and other analysts believe Tesla will unveil CyberCab, its next-generation platform, and FSD and AI updates, Musk said there are “near-term issues” investors see with self-driving. Ives predicts that they will also work on “. Overcome them.
Ives said Tesla, which has an Outperform rating from Wedbush and a bullish price target of $300, is undergoing a new transformation not seen since the mass production release of the Model 3 and Model Y. , added that the next stage will focus on AI, FSD, and supercomputing. He believes this stage alone could be worth $1 trillion.
“We strongly believe that Tesla will continue to be more than just an EV vendor in the future, and will continue to be in the robotics/AI space,” Ives said. “This is a pivotal time for Tesla, as Musk & Co. lays out its vision for the company’s future while the company prepares to release years of behind-the-scenes robotaxi research and development. We are thinking.”
Pras Subramanian is a reporter for Yahoo Finance. you can follow him Twitter And also on Instagram.
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