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Tesla investor views likely to remain entrenched after Robotaxi Day: Barclays

Published 30/09/2024, 11:46 pm
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Investing.com -- Tesla’s upcoming Robotaxi Day, scheduled for October 10th, is unlikely to sway investor sentiment, given the deeply entrenched views around the company’s autonomous vehicle (AV) strategy, Barclays (LON:BARC) analysts said Monday.

With the event set to outline Tesla (NASDAQ:TSLA)'s ambitious vision for its next phase of growth, focused on AI and driverless technologies, it is expected to reinforce existing perspectives rather than change minds.

“Bulls see Tesla further owning the narrative on AV, [while] skeptics see a long path ahead to scaling,” analysts note.

The electric vehicle (EV) giant’s shift in focus from vehicle manufacturing to autonomous technology and AI is a pivotal part of its growth narrative, and the upcoming Robotaxi Day will be key in shaping that narrative.

Investors can expect the announcement of a driverless pilot in select locations and the potential unveiling of the Model 2.5, Tesla's forthcoming low-cost vehicle. However, the report suggests that the event might be light on details regarding timelines or the broader commercialization of AV technology, focusing instead on vision and targets “that will underpin Tesla's growth endeavors in AV/AI,” analysts said.

Overall, with Tesla investors “largely entrenched in their views, we don't see the event significantly changing views of Tesla's opportunity in AV,” analysts continued.

On one hand, they note that Tesla's bullish investors, particularly in the retail sector, may come away from the event with a positive outlook. Tesla continues to dominate the narrative around consumer AV, and its broad approach to scaling may further solidify that position for some.

However, the analysts also highlight that skeptics are likely to focus on the challenges ahead, particularly the costly and prolonged process of scaling the technology. Tesla’s position relative to Waymo, often viewed as the leader in driverless AV, may also come under scrutiny.

This, in their view, lends weight to the likelihood of a "sell the news" reaction, “especially given ingoing strength of the stock.”

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