
It’s Robotaxi Week: Key Questions for Investors
Tesla is set to host its much-anticipated Robotaxi event on October 10, and investors are keen to hear the latest updates from the company.
Bernstein has noted that there is considerable uncertainty surrounding what Tesla will announce. Investors are particularly curious about potential updates regarding robotaxi trials, advancements in self-driving technology, and possibly the introduction of new vehicle models.
However, Bernstein cautions that Tesla has a history of being overly optimistic, particularly when it comes to its Full-Self Driving (FSD) technology, which means investors should be mindful of the specifics in the upcoming announcements.
The firm expects Tesla to showcase purpose-built robotaxis and a ride-hailing app, along with updates on FSD development and future plans. Bernstein points out that Tesla has previously demonstrated mock-ups of its robotaxi ride-hailing app, including features like a ‘summon’ button and estimated wait times.
Additionally, the company is anticipated to announce self-driving trials in various cities, likely kicking off in Texas. There is also speculation regarding possible previews of Tesla’s new “2.5” models and updates on the Optimus robot, though these details remain uncertain.
Despite this excitement, Bernstein warns that while the event may present a compelling vision, it might not deliver on immediate revenue-generating products.
Investors have expressed concerns regarding Tesla’s journey toward regulatory approval, the compatibility of FSD with existing models, and how the company stacks up against competitors like Waymo.
The Bernstein analysis includes ten critical questions for investors, such as whether Tesla believes its camera-only approach can surpass the safety records of current LiDAR systems, and how the company intends to scale its robotaxi service while potentially partnering with established ride-hailing networks.
In conclusion, Bernstein remains cautious about Tesla’s prospects. They believe the company faces notable technological and regulatory challenges in achieving sustainable profits from robotaxis, warning that the event could turn into a “sell-the-news” scenario.
Ultimately, Bernstein suggests that this could be another instance of a “sell the news” moment, in line with historical trends surrounding Tesla announcements, unless the updates regarding the “2.5” models are particularly significant.