As we look ahead to Tesla’s highly anticipated autonomous taxi event on October 10, excitement is palpable. But analysts are issuing caution, suggesting that the heightened market expectations surrounding the event could result in a “sell the news” scenario, potentially pressuring Tesla’s stock price.
Taking place at the Warner Bros. Discovery studio in Burbank, California, the event kicks off at 5 PM PT, with Tesla executives slated to deliver a keynote speech at 7 PM PT. This address is expected to be streamed live on Tesla’s official YouTube channel and on X, the social media platform owned by CEO Elon Musk.
What can we expect from the event? Tesla is likely to unveil a physical autonomous taxi and delve into discussions about its business model, licensing, and operational strategies for self-driving taxis. There will also be plans outlined for the future integration of these vehicles on public roads.
However, CFRA analyst Garrett Nelson cautions that the event could result in selling pressure on Tesla shares. He commented, “Musk has a long history of overstating timelines for various Tesla products,” suggesting that self-driving taxis could follow the same pattern.
Musk’s ambitious timelines are not new. Back in 2016, he projected that a fully autonomous Tesla would debut in 2017 and has continued to make similar predictions almost annually regarding the rollout of autonomous technology.
On a more optimistic note, Wedbush analyst Dan Ives argues that the impact of the autonomous taxi event could be significant. He remarked, “Tesla is one of the most undervalued players in the AI space, and we expect Musk’s company to unveil some game-changing autonomous driving technology.” It’s worth noting that Tesla utilizes AI-driven algorithms to enhance the training of its self-driving vehicles.
The atmosphere on Wall Street is electric as analysts discuss the potential impacts of the upcoming event on Tesla’s stock price. Sentiments are divided; some view this event as a catalyst for a stock price surge, while others worry it may not live up to market expectations. Regardless, there seems to be a shared belief that Musk will use this occasion to reinforce the idea that Tesla is more than just a car manufacturer, positioning it as a formidable player in the AI arena.
