Unlocking Tesla's Stock Potential: Robotaxi Event Insights from Bank of America Analysts
In a highly anticipated event, Tesla (NASDAQ:) is set to showcase its advancements in Full Self-Driving (FSD) technology and artificial intelligence (AI) computing capabilities at the upcoming Robotaxi Event on October 10 in Los Angeles. Bank of America analysts believe that this event could serve as a catalyst for Tesla's stock, as investors gain valuable insights into the company's plans for a robotaxi business.
Originally scheduled for August, the event was postponed to allow for engineering changes to the Cybercab vehicle and the development of multiple prototypes. While expectations have been tempered, the event still holds significant potential for investors.
Since the introduction of FSD 12 in early 2024, Tesla vehicles have driven over 600 million miles using the software, with interventions required only once every 10,000 miles. The company is working towards a generalized robotaxi solution that operates beyond geo-fenced areas, which will necessitate further neural network training.
Tesla is also expanding its AI infrastructure, with plans to have 85,000 Nvidia (NASDAQ:) H100 chips active by the end of 2024. At the event, Tesla is expected to unveil a prototype of the new Cybercab, a two-door sedan.
Bank of America analysts believe that automakers like Tesla, with control over car design, features, and performance, are well-positioned to quickly scale robotaxi services. Additionally, the analysts note that Tesla's showmanship at events like this tends to boost the stock.
While the exact details of the event are unpredictable, Bank of America anticipates that Tesla may provide updates on its market targets, FSD scalability, AI-driven revenue potential, and other strategic insights that could further drive optimism for investors.
Analysis:
The upcoming Tesla Robotaxi Event on October 10 in Los Angeles could be a significant turning point for investors as they gain insights into Tesla's FSD technology and plans for a robotaxi business. With advancements in AI computing capabilities and the unveiling of the new Cybercab prototype, Tesla is poised to showcase its leadership in the autonomous vehicle space. Investors should keep a close eye on the event as it may impact Tesla's stock performance and future growth potential.