Tesla is scheduled to reveal its highly anticipated robotaxi on Thursday with an event at the Warner Bros. studio in Burbank. Investors appear to be waiting before making any big Tesla stock bets.
Robotaxi event invitations were officially sent to Tesla investors on Sept. 25 and while most of the details are still under wraps, Chief Executive Elon Musk is setting sky-high expectations for the event.
"This will be one for the history books," Musk posted to X on Sept. 25, along with a photo of the event announcement. "We, Robot," the banner reads. "10.10 Los Angeles."
On Sept. 11, Musk wrote on X that in his opinion the robotaxi reveal will be the most significant moment for Tesla since the EV company unveiled the Model 3 nearly nine years ago.
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"We think the stakes are high and there is more risk to the downside than upside given the stock's recent run-up and likelihood that the event could disappoint," CFRA analyst Garrett Nelson wrote on Oct.2.
"We also note the stock price run-up and then 'sell the news' pattern of major Tesla events historically. Specifically, we are looking for more visibility regarding intermediate-term earnings growth," Nelson added.
In Thursday afternoon market action Tesla stock edged down nearly 1% to 238.77, hitting a low of 232.34 intraday. Shares are down 4.5% on the week.
Investors won't get a market reaction to the Tesla robotaxi event until early Friday morning.
The stock has been climbing above its 50-day moving average to within around 11% of its July high.
Tesla Stock: Location And Viewing
Tesla has confirmed the robotaxi reveal will take place in Los Angeles at the Warner Bros. studio in Burbank. Remarks and the presentation are set to begin at 7 PM Pacific Standard Time on Thursday.
Tesla is telling attendees there will be security screenings at the event and that no backpacks or "large bags" are allowed. The EV giant is also encouraging people in attendance to wear "closed-toe shows."
The event will be broadcast on Tesla's X social media channel. The EV giant will also be hosting watch parties at Tesla stores across North America.
On Sept. 10, Tesla announced retail investors could sign up for a chance to attend the event in person.
"Join us for We, Robot — our official unveiling of the future of autonomy," the invite proclaims.
The Robotaxi And Maybe Something Else?
Musk previously planned to unveil the robotaxi on Aug. 8, but pushed the event out to "make some important changes." Musk also hinted on the Q2 earnings call that there could also potentially be other product announcements on Oct. 10.
"Moving it back a few months, allowed us to improve the robotaxi, as well as add in a couple other things for the product unveil," Musk said on the July 23 earnings call.
Wedbush Securities analyst Dan Ives, a longtime Tesla bull, on Wednesday said the robotaxi event will be a "seminal and historical day for Musk and Tesla and marks a new chapter of growth around autonomous," expecting "game changing" autonomous technology.
Ives has said he expects Musk and Tesla to provide updates during the robotaxi event on full self-driving, known as FSD, and artificial intelligence (AI).
"We expect to hear many updates and more granularity from Tesla and Musk on its robotaxi rumored to be named the "Cybercab", its next-gen platform, breakthroughs in FSD & AI with robotaxi rolling out phases of the strategy within the next year," Ives wrote in late September.
Adam Jonas, Morgan Stanley's high-profile auto analyst and a TSLA bull, wrote on Oct. 2 he predicts the Oct. 10 robotaxi event will include a demonstration of the latest iteration of full self-driving, or FSD, which would be version 12.5 or later, as well as a demonstration of a fully-autonomous robotaxi, or "cyber-cab" driving on a a closed course.
Jonas forecasts potential initial commercial introduction of the cyber-cab could be late 2025 or 2026.
Jonas has stressed that Tesla currently has a permit for autonomous vehicle testing "with a driver" but does not possess a permit for autonomous vehicle testing or deployment without a driver.
On Musk's hints at other products, Jonas wrote in September: "Could we see an electric plane? A boat? The latest gen Optimus robot flipping burgers at a Tesla Diner? We're not really sure."
"We remind investors that such events aim to achieve multiple purposes including recruiting, marketing and consumer education," the analyst added.
Tesla Stock Performance
Tesla stock fell 3.7% to 240.83 on Monday, slightly below the 21-day moving average, after dropping 4% last week with Q3 deliveries in line, but below some whisper numbers. Shares found support around the 21-day line, rising 3.9% on Friday.
Tesla stock now has a handle on a daily and weekly chart, giving it a 264.86 cup-with-handle buy point, according to MarketSurge chart analysis. The 250 area offers an early entry. But buying before the robotaxi event could be highly risky.
On Sept. 5, shares popped above their 50-day moving average, buoyed by robust China sales and the EV giant's full self-driving rollout plans.
TSLA shares jumped more than 22% in September after declining 7.7% in August. Tesla stock has battled back in 2024 and is now down just 3% on the year, after rebounding about 90% from a late-April low.
Tesla has a busy October. Third-quarter deliveries are done but the EV giant has the robotaxi event on Thursday and then Q3 earnings on Oct. 23.
Tesla stock ranks fourth in the 35-member IBD Auto Manufacturers industry group. The stock has a 55 Composite Rating out of a best-possible 99. Shares also have a 45 Relative Strength Rating and a 57 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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