Tesla’s upcoming Robotaxi event is all the hype for the automaker and its investors, but a firm is now saying it is unlikely to change these two things for the company.
Tesla’s Robotaxi unveiling event will show off a new vehicle platform and potentially break down a timeline of when the automaker truly expects to have fully self-driving vehicles on the road.
The company has broken down many timelines for fully autonomous vehicles in the past, coming up short on each of them.
Although Tesla has hyped its self-driving performance and, without a doubt, has improved its suite, it is still likely far off from releasing a vehicle capable of Level 5 autonomy.
Analysts from Barclays are now breaking down their anticipation for the event, but they are unconvinced much will change in terms of bull and bear sentiment or the company’s long-term story (via Street Insider):
“Bulls see Tesla further owning the narrative on AV, [while] skeptics see a long path ahead to scaling.”
Additionally, the note Barclays analysts released to investors on Monday said that Tesla investors are already “entrenched in their views,” and even if the event does not live up to expectations across the board, it lacks true timelines, targets, safety expectations, and other details, shareholders are not going to care:
“[Investors are largely entrenched in their views, we don’t see the event significantly changing views of Tesla’s opportunity in AV.”
Other analysts have put out different perspectives on the event. Some would like to see Tesla bring out other products, like an affordable $25k vehicle, which some say is a bigger catalyst for the stock than the Robotaxi is.
Perhaps the most robust analyst note on the event came from Morgan Stanley’s Adam Jonas, who said Tesla needs to address Safety, Improvement, and its Methodology at the event in order for it to be successful.
Jonas expanded on these three categories:
- Safety – “Will investors see data comparing the safety of Tesla’s AV vehicle technology to human driving?”
- Improvement – “Can investors get a good sense of the rate of change of performance across recent iterations of FSD?”
- Methodology – “What will investors learn about the critical enabling technologies to drive further improvement in FSD/cybercab autonomy?”
Tesla’s Robotaxi Event needs these three things addressed: Morgan Stanley
It is no secret that many of the company’s biggest supporters will see even a lackluster event as a major breakthrough, even if no new information is released.
Although we suspect Tesla will deliver with Robotaxi demonstrations and perhaps a new, more realistic timeline, the true growth for shares will come from the company’s ability to execute.
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