50.9% of Investing Readers Support Buying and Holding Tesla Ahead of Robotaxi Event

Investors are considering the opportunity to buy and hold shares in Tesla ahead of a highly anticipated event this week where the company plans to unveil a new robotaxi. A recent poll indicated that 50.9% of the 1,916 respondents favored taking a position in Tesla, while 49.1% suggested selling the stock.

Over the past four months, Tesla’s shares have surged by more than 43%, driven by excitement surrounding this upcoming event, despite ongoing concerns about modest growth expectations for demand within Tesla’s electric vehicle sector.

The robotaxi, referred to as the Cybercab, represents a revolutionary approach to transportation, designed to autonomously transport passengers. According to CEO Elon Musk, the service will operate on Tesla’s proprietary platform, enabling car owners to make their vehicles available on a ride-hailing network, much like autonomous taxis. Musk has compared this innovation to a blend of Airbnb and a major ride-sharing platform.

Musk has estimated that this robotaxi division could significantly increase Tesla’s valuation to $5 trillion, compared to its current valuation of approximately $770 billion. Analysts from RBC Capital Markets have projected that the broader robotaxi industry might generate $1.7 trillion in global revenue by 2040, with several competitors eager to secure a share of this promising market.

As anticipation builds, observers are eager for Tesla to provide additional insights into the logistics and financial aspects of the robotaxi unit during the much-anticipated event, which has already faced delays, scheduled for October 10 in Los Angeles.

Analysts at Wells Fargo expressed hopes for real-time demonstrations of the latest autonomous vehicle technologies. Additionally, it is imperative for Tesla to demonstrate that its approach, which combines cameras and artificial intelligence, is effective enough to replace the costly hardware typically associated with radar and lidar technology used by other robotaxi competitors.

There remain concerns about the potentially significant cash expenditure of the robotaxi unit, strategies for promoting widespread use of the service, and the timeline for obtaining necessary regulatory approvals. Analysts cautioned that the event could either provide crucial insights into the future of the robotaxi endeavor or serve merely as a rallying point for Tesla’s supporters.