One of Tesla’s Biggest Bulls Disappointed After Robotaxi Event

Morgan Stanley analysts expressed disappointment after Tesla’s much-anticipated “We, Robot” event, pointing out that it lacked important details concerning Full Self-Driving (FSD) technology, ride-sharing economics, and a market strategy for autonomous vehicles.

In early trading on Friday, Tesla shares dropped by over 8%, with many analysts commenting on the absence of critical information presented during the event.

While Tesla showcased its anticipated “cybercab,” Morgan Stanley remarked that the presentation did not offer any significant new insights. The firm has been among the most optimistic advocates for Tesla in the investment community.

“We were overall disappointed with the substance and detail of the presentation,” analysts stated in their report.

Before the event, Morgan Stanley had expected crucial updates on Tesla’s FSD system, including measurable improvements such as miles driven without disengagement, but these details were not provided.

The firm also looked forward to insights regarding Tesla’s ride-sharing strategies, both supervised and unsupervised, including economic analysis and total addressable market (TAM) estimates.

“We had anticipated at least some incremental information about the ‘rate of change’ of the FSD system,” they elaborated.

Furthermore, the event did not include any substantial discussion regarding Tesla’s partnership with xAI or updates on Tesla’s “Master Plan 4,” leaving analysts feeling that the event did not significantly enrich Tesla’s narrative as an AI company.

Consequently, Morgan Stanley expects Tesla shares to face downward pressure following the event. Nonetheless, the firm maintained an Overweight rating on Tesla shares.