Tesla is scheduled to reveal its highly anticipated robotaxi on Oct. 10 at an event at the Warner Bros. studio in Burbank, California, and investors appear to be waiting until then before making any big Tesla bets. Now, a top analyst, and Tesla bull, is urging "clients to keep expectations well managed for the near term." TSLA shares sank Friday.
Adam Jonas, Morgan Stanley's high-profile autos analyst and a Tesla bull, wrote Thursday what he expects the Oct. 10 robotaxi event will include. The analyst added that while he is bullish on the long-term potential for autonomous vehicles, expectations should be tempered in the near-term. Jonas also kept Tesla as the firm's "top pick" in the U.S. auto space.
Morgan Stanley predicts there will be 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/semi-closed course."
Jonas stressed in his analyst note 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.
Tesla stock dropped 8.5% to 210.73 during market action on Friday, dropping back below its 50-day moving average after reclaiming that level on Thursday. The stock advanced 4.9% to 230.17 on Thursday, closing off intraday highs of 235.
Tesla stock ended the week down 1.5%.
The Robotaxi Event And AI Roadmap
Chief Executive Elon Musk previously planned to unveil the robotaxi on Aug. 8, but pushed the event out to "make some important changes." Musk added on the Q2 earnings call the reason for the delay was to "add in a couple other things for the product unveil" — hinting at potentially other product announcements on Oct. 10.
"Could we see an electric plane? A boat? The latest gen Optimus robot flipping burgers at a Tesla Diner? We're not really sure," Jonas wrote Thursday.
"We remind investors that such events aim to achieve multiple purposes including recruiting, marketing and consumer education," the analyst added.
Meanwhile, Tesla announced Thursday an outline with FSD target timelines. The list includes FSD coming to the Cybertruck this month and the aim for around six times the "improved miles between necessary interventions" for FSD by October. This is along with its goal of Q1 2025 for FSD in China and Europe.
Tesla also aims to roll out FSD V13 in October vs. the current V12.5. The "roadmap", posted by the Tesla AI team, does not include any mention of the robotaxi.
Market Sends Bearish Signals; What To Do Now
Tesla Stock Performance
TSLA shares are now down in September after declining 7.7% in August to 214.11, dropping below its 50-day line.
Tesla stock has fallen around 15% in 2024, after rebounding about 60% from a late-April low amid some steep ups and downs.
Shares rallied onto positive ground for the year in mid-July, then rolled over into a five-week slide. Now, into an attempt to climb out of that ditch, the stock is looking to remain above its the 200-day line and hold support at its 50-day moving average, according to MarketSurge charts.
On Thursday, TSLA made a solid move above the 50-day line and flashed a buy signal, topping the Aug. 20 short-term high of 228.22. However, after Friday trade, Tesla stock has now formed a cup base. Unless TSLA comes back up above 282.22 on Monday, investors could use Thursday's high of 235 as an early buy point.
Tesla stock ranks third in the 35-member IBD Auto Manufacturers industry group. The stock has a 71 Composite Rating out of a best-possible 99. Shares also have an 81 Relative Strength Rating and a 57 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
YOU MAY ALSO LIKE:
Is Tesla Stock A Buy Or A Sell?
Get Full Access To IBD Stock Lists And Ratings
Learning How To Pick Great Stocks? Read Investor's Corner
AI Is Fueling A 'Nuclear Renaissance.' Bill Gates And Jeff Bezos Are In The Mix.
Elon Musk's xAI Has Discussed Sharing Tesla Revenue
What's On Tap: Apple iPhone 16 Headlines Three Big AI Events
