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Tesla stock rises on robotaxi news, potentially 'thesis-changing' say analysts

Published 08/04/2024, 08:44 pm
TSLA
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Tesla (NASDAQ:TSLA) shares are up more than 3% premarket Monday after Elon Musk said Friday that the electric vehicle giant will unveil a "robotaxi" on August 8.

Musk took to his X (formerly Twitter) platform after the close on Friday, stating: "Tesla Robotaxi unveil on 8/8".

Previously, Musk claimed that Tesla would make a car that doesn't require human control. He has also stated that Tesla vehicles equipped with Full Self-Driving Capability will continue to improve through software updates.

Reacting to the news, analysts at Deutsche Bank said in a note Monday that they view Friday's sequence of Tesla news as potentially thesis-changing for investors. However, they believe many questions are still unanswered and it "may be too early to tell if it is particularly bearish, or potentially positive."

The firm also acknowledged the Reuters report on Friday that claimed Tesla is scrapping its upcoming Model 2, stopping its efforts to produce a $25k consumer EV. Musk quickly dismissed the article on X shortly after its release, describing it as a lie.

"As of now, it is unclear if a drivable version of Model 2 is still coming and, if so, when; how far along is robotaxi in its development, and what a realistic timeline for deployment is in light of considerable technology and regulatory hurdles ahead," added Deutsche Bank.

Analysts at Barclays said in a note Monday that they believe a pivot away from Model 2 in favor of a purpose-built Robotaxi "would be a fairly clear negative, and it would further drive a wedge between the 'rational' and 'exuberant' Tesla bulls."

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