Robotaxi Day to Launch a ‘New Era of Growth’ for Tesla, According to Wedbush

Tesla is preparing to host its eagerly awaited “We, Robot” Robotaxi event next Thursday, October 10th, at the Warner Bros. movie studio in Los Angeles, following the market close.

Analysts from Wedbush believe that Robotaxi Day could mark a significant turning point for both Tesla and Elon Musk, heralding a “new era of growth” centered on autonomous driving, Full Self-Driving (FSD), and artificial intelligence.

The analysts state, “We continue to believe Tesla is the most undervalued AI name in the market and we expect Musk & Co. to unveil some ‘game-changing’ autonomous technology at this event next week.” They foresee the event providing detailed insights into Tesla’s rumored Robotaxi, likely referred to as the “Cybercab,” as well as advancements in its Next-Gen platform and improvements in FSD and AI.

Wedbush also expects Tesla to outline its strategy for a phased rollout of the Robotaxi over the next year. Attendees can anticipate projections related to scaling the Cybercab, cost-per-mile estimates, the introduction of a Tesla ride-share app, and a demonstration of its innovative urban transportation technology.

With few industry events generating as much anticipation, the analysts believe Musk will address both the immediate concerns of investors and the company’s long-term vision as Tesla embarks on its second major transformation since the production overhaul of the Model 3 and Model Y.

They maintain that Tesla is positioned as a leader in robotics and AI, extending beyond its identity as merely an electric vehicle manufacturer.

Tesla’s recent release of FSD version 12.5 in September brought significant updates, with version 13 expected by year-end, promising a sixfold improvement in miles-per-intervention, up from threefold in version 12.5.

Additionally, Tesla’s proprietary neural network remains central to its advancements, with this update likely introducing features such as autonomous parking and reversing.

Updates on the company’s humanoid robot, Optimus, are also anticipated, with the goal of achieving external sales of the robots by 2026.

Wedbush believes this represents a “pivotal time for Tesla” as it showcases the outcomes of years of research and development for its Robotaxi project, along with Musk and his team articulating the company’s future vision.

“We continue to believe AI and FSD alone could represent $1 trillion in value for Tesla in the coming years… next week it’s time for Musk to kick off this AI era at Tesla with a watershed unveiling event,” the firm concluded. They reiterated an Outperform rating on Tesla stock with a price target of $300.