The Robotaxi Event: A Major Catalyst for Tesla Stock

Tesla’s upcoming Robotaxi Event on October 10 in Los Angeles could significantly influence its stock price, according to analysts at Bank of America. Originally set for August, the event was pushed back to accommodate engineering modifications to the robotaxi vehicle, referred to as the Cybercab, and to produce multiple prototypes.

While expectations for the event have moderated, it still presents a valuable opportunity for investors to learn more about Tesla’s Full Self-Driving (FSD) technology and its ambitions in the robotaxi sector. Bank of America anticipates that Tesla will highlight advancements in its FSD technology as well as its artificial intelligence (AI) computing capabilities.

Since the launch of FSD 12 in early 2024, Tesla vehicles have reportedly covered over 600 million miles with this software, requiring driver intervention only once every 10,000 miles. The bank points out that Tesla is striving for a robotaxi solution that extends beyond geo-fenced areas, which will necessitate additional training for its neural networks.

Additionally, the company is reportedly enhancing its AI infrastructure, with plans to deploy 85,000 Nvidia H100 chips by the end of 2024. During the event, Tesla is expected to unveil a prototype of the new Cybercab, designed as a two-door sedan.

Bank of America notes that automakers like Tesla, which maintain control over their vehicle design and operations, are exceptionally positioned to scale robotaxi services effectively. Analysts also highlight that Tesla’s presentations at such events typically generate positive momentum for the stock. While the specifics of the announcements remain uncertain, there is potential for updates about market targets, FSD scalability, AI-driven revenue opportunities, and other strategic insights that could enhance investor confidence.