Summary
- Tesla’s Robotaxi event will unveil a new vehicle platform and timeline for fully self-driving vehicles
- Previous timelines for fully autonomous vehicles by Tesla have fallen short
- Analysts are skeptical that the event will significantly change investor sentiment or the company’s long-term outlook
- Some analysts believe that a more affordable vehicle would be a bigger catalyst for the stock than the Robotaxi
- Morgan Stanley analyst Adam Jonas points out the need for addressing Safety, Improvement, and Methodology at the event
Article
Tesla is gearing up for its highly-anticipated Robotaxi unveiling event, which is expected to showcase a new vehicle platform and possibly provide a timeline for fully self-driving vehicles. The company has failed to meet previous timelines for autonomous vehicles and is likely still far from releasing a Level 5 autonomous vehicle. Barclays analysts are skeptical that the event will significantly impact bullish or bearish sentiment towards Tesla, as investors are already entrenched in their views about the company’s potential in autonomous vehicles.
While some analysts believe that the unveiling of an affordable $25k vehicle would be a bigger catalyst for the stock than the Robotaxi event, others, like Morgan Stanley’s Adam Jonas, suggest that Tesla needs to address Safety, Improvement, and Methodology in order for the event to be successful. Jonas emphasizes the importance of comparing the safety of Tesla’s autonomous vehicle technology to human driving, understanding the rate of change in performance across recent iterations of full self-driving technology, and learning more about the critical enabling technologies for further improvement in autonomous driving.
Many of Tesla’s supporters are likely to view even a subpar event as a major breakthrough, regardless of whether new information is revealed. While the Robotaxi demonstrations and potential new timelines are expected, the company’s ability to execute on its plans will be crucial for driving growth in its shares. It remains to be seen whether the event will meet expectations and address the key concerns and questions surrounding Tesla’s autonomous driving technology.
Overall, analysts are divided on the impact of Tesla’s Robotaxi event on the company’s long-term story and investor sentiment. While some see it as an opportunity for Tesla to further own the narrative on autonomous vehicles, others believe that the event may not provide the clarity and details necessary to change investor views. The true growth potential for Tesla shares will likely depend on the company’s ability to deliver on its promises and demonstrate progress in autonomous driving technology.
In conclusion, Tesla’s Robotaxi event may not bring significant changes in terms of investor sentiment or the company’s long-term outlook. While the event is expected to showcase new developments and potentially provide a timeline for fully self-driving vehicles, analysts are skeptical about its impact on the market. Investors are already entrenched in their views about Tesla’s potential in autonomous vehicles, and it will be crucial for the company to address key concerns such as safety, improvement, and methodology in order to drive growth in its shares.
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