Robotaxi Day Signals a New Growth Era for Tesla, According to Wedbush

Tesla is set to host its highly anticipated Robotaxi Day on Thursday, October 10. Analysts from Wedbush believe this event represents a significant opportunity for growth in the areas of autonomy, Full Self-Driving (FSD), and artificial intelligence (AI) within the electric vehicle company.

Wedbush analysts highlighted their view that Tesla is currently one of the most undervalued players in the AI sector and anticipate that the company will reveal some groundbreaking autonomous technology during this event.

At the “We, Robot” presentation, analysts expect updates on the much-anticipated Robotaxi project, which is rumored to be called the “Cybercab.” They anticipate that Tesla and Elon Musk will share pivotal information regarding the Next-Gen Platform, advancements in FSD technology, and AI initiatives, laying out the company’s Robotaxi strategy for the upcoming year.

Significant updates are expected to cover the scaling of the Cybercab, cost-per-mile projections, the potential launch of a Tesla ride-share app, and a Generation 1 demonstration of the innovative urban transportation technology.

Analysts view this event as one of the most awaited in the industry, anticipating that Musk will address both the immediate concerns of investors and the company’s long-term vision. They see it as a second major transformation for Tesla, following the significant overhaul of Model 3 and Model Y production.

The analysts reaffirmed their belief that Tesla is transitioning into a robotics and AI leader rather than merely an electric vehicle manufacturer, maintaining their Outperform rating on the company’s stock with a price target of $300.

The company’s emphasis on FSD and AI continues to gain traction, having logged over 1.5 billion miles in its data centers. The recent launch of FSD version 12.5 in September included notable updates, while version 13 is expected by the end of the year, promising a sixfold improvement in miles per intervention, compared to the current threefold for version 12.5.

Furthermore, the upcoming version is anticipated to showcase advanced features such as autonomous parking and reversing, as Tesla continues to refine its FSD technology. The company’s humanoid robot, Optimus, is also attracting growing investor interest, with ambitions for external sales by 2026.

In terms of stock performance, Tesla shares have lagged behind the broader market in 2024, with a year-to-date decline of around 3%, juxtaposed with the S&P 500’s gain of 21.4%.