Prominent Morgan Stanley Analyst on Tesla’s Robotaxi Reveal

Adam Jonas recently shared his insights on what investors might expect from this groundbreaking event.

Tesla TSLA Stock

As Tesla (TSLA) continues to push the boundaries of electric vehicle technology and autonomous driving, all eyes are on the company’s highly anticipated robotaxi event scheduled for October 10 at Warner Bros. Studios in Burbank, California. This revelation comes after a recent surge in Tesla’s stock price, fueled by the company’s latest autonomous driving milestones.

Morgan Stanley’s prominent Tesla analyst, Adam Jonas, recently shared his insights on what investors might expect from this groundbreaking event. In a note published Thursday night, Jonas reiterated the firm’s bullish long-term stance on Tesla, maintaining its status as their “top pick” in the automotive sector. However, he cautioned investors to “keep expectations well managed” for the upcoming presentation.

Jonas speculates that the event will showcase “a demonstration of the latest iteration of FSD [full self-driving] (version 12.5 or later) and a demonstration of a fully-autonomous ‘cyber-cab’ in what we expect to be a closed/semi-closed course.” The reveal of this “cyber-cab,” as Jonas dubs it, is widely anticipated, but the analyst hints at potential surprises that could captivate investors and enthusiasts alike.

Given the extra time afforded by CEO Elon Musk’s decision to postpone the robotaxi reveal from August to October, Jonas suggests that Tesla’s engineers and designers might have a few additional innovations up their sleeves. He playfully muses, “Could we see an electric plane? A boat? The latest gen Optimus robot flipping burgers at a Tesla Diner?”

While these speculations may seem far-fetched, Tesla has a history of unveiling unexpected products at its special events, often aimed at wowing investors, boosting marketing efforts, and attracting top talent.

The choice of Warner Bros. Studios as the venue for this pivotal event is intriguing. As reported by Bloomberg, the selection of this iconic location could signify Tesla’s intention to create a cinematic experience around their robotaxi unveiling. This strategic move aligns with the company’s flair for dramatic presentations and its ability to capture public imagination.

Despite the excitement surrounding the event, it’s crucial to note that the development and deployment of fully autonomous robotaxis face significant regulatory and technological hurdles. Investors will be keenly listening for updates on Tesla’s progress in obtaining necessary permits and details about test sites, which are critical components of Jonas’s long-term bull thesis for the company.

Tesla’s investments in AI and supercomputing are expected to play a central role in powering these self-driving initiatives. The October 10 event may shed light on how Tesla plans to leverage its technological advancements to bring the concept of robotaxis to fruition.

While the stock has seen a significant uptick in recent weeks, with a reported 22% increase over the last month, market observers caution that Tesla’s stock remains subject to volatility. The 8% drop following the announcement of the event’s delay from August to October serves as a reminder of the stock’s sensitivity to news and expectations.

As the date approaches, the tech and automotive worlds eagerly await Tesla’s robotaxi reveal. Whether it’s a game-changing autonomous vehicle or unexpected innovations, one thing is certain: Tesla continues to drive the conversation around the future of transportation.

Jonas and Morgan Stanley maintain their Overweight rating on Tesla, with a price target of $310. At last check, TSLA was changing hands at $211 p/sh.

As October 10 draws near, investors, enthusiasts, and skeptics alike will be watching closely to see how Tesla’s vision for autonomous ride-hailing services unfolds on the big stage at Warner Bros. Studios.

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About Ari Haruni 189 Articles
Ari Haruni is the Co-Founder & CEO of Wall Street Pit.

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