TSLA – Daily Chart
TSLA shares are trading below key resistance around $265 and positive sentiment from the event could catapult them toward $300. If analysts do not like the outlook for ride-hailing then a move to $220 would be likely.
Robotaxi day, officially called “We, Robot,” will be Elon Musk’s opportunity to outline the future for robotaxis. Analysts are expecting to see a prototype model of an EV and maybe a look at the app for calling a taxi and operating as a provider. One of the key selling points for Tesla was that its vehicle owners could allow them to operate as a taxi and gain an income.
Tesla’s event will be streamed at around 11 am HKT from the Warner Bros. studio in California and that location hints that investors may see some film-style production, such as a taxi in action.
Tesla executives need to “reinforce to consumers and investors that they continue to be innovators,” said Gene Munster at Deepwater Asset Management. He expects to see a robotaxi prototype, alongside talk of a cheaper “Model 2” EV. He added that there could also be a completely new model, such as a commercial van.
“The bar on the robotaxi is pretty high, but the rest of the stuff is pretty easy, they don’t need to roll a vehicle out there. They can just talk about it,” Munster said. The “real substance” would be a timeline for the vehicle.
Musk has admitted to being overly-optimistic on autonomous driving in the past.
“Tesla’s history is overpromise and underdeliver, so whatever timing is put on this vehicle, it’s going to be pushed back,” said Sam Fiorani, VP of global vehicle forecasting at AutoForecast Solutions LLC.
”We are still considering what promises will make it to production and what won’t,” he said.
There is also the issue of regulatory approval for a self-driving vehicle on the road.
“The fear among the general public is that they are more harmful than helpful,” at least for the moment, Fiorani said. “I can’t imagine that the average American thinks that the idea of a robotaxi is a good one, even if they are likely to be safer and eventually cheaper.”