Tesla (TSLA, Financial) will host a significant robotaxi event titled "We, Robot" on October 10 at Warner Bros. Studio in Burbank, California. CEO Elon Musk has hyped the event as potentially the company's largest in history. Originally scheduled for August 8, the event was postponed to allow more time for critical design changes and other preparations.
The highlight of the event could be the unveiling of the Cybercab prototype, likely a two-door sedan with a front end similar to the Model 3. Topics may include market size for robotaxis, timelines for achieving full self-driving (FSD), potential revenue growth driven by AI, and other applications of Tesla's evolving robotics technology.
Banks have mixed expectations. Bank of America notes that while market expectations have tempered due to delays, the event still offers a chance for investors to understand Tesla's current FSD capabilities, as well as the operational and structural aspects of its robotaxi business. Tesla aims to launch robotaxi services by 2025, utilizing both its existing fleet and new Tesla-owned vehicles.
On the other hand, Morgan Stanley cautions that the event might not meet high investor expectations. Analyst Adam Jonas suggests that aside from showcasing FSD v12.5 and offering rides in the first-generation Cybercab, the company might not have significant surprises. He also points to possible comparisons of Tesla's autonomous tech with human-driven car safety data and key enabling technologies for future FSD advancements.
Other players are also entering the robotaxi space. Uber Technologies (UBER) and Chinese EV maker BYD are preparing for a global robotaxi service. Uber announced that Waymo autonomous vehicles will soon be available through its app in Austin and Atlanta. Additionally, WeRide and Uber have formed a strategic partnership to introduce WeRide's autonomous vehicles on Uber's platform, starting in Abu Dhabi later this year.
Uber has also partnered with General Motors' Cruise to bring Cruise's autonomous vehicles to its platform. Cruise has about 1,200 vehicles and has operated in several cities, including San Francisco and Austin. Notable is its resumption of supervised autonomous driving in Phoenix, Houston, and Dallas, along with testing in Dubai. Other companies like Pony.ai, May Mobility, Baidu's Apollo, WeRide, AutoX, Aurora Innovation (AUR), Motional (APTV), and Amazon's ZOOX (ZOOX) have also launched robotaxi initiatives.
Last week, Tesla's stock rose 5.6%. While the company is set to release its Q3 delivery report on October 2, the October 10 robotaxi event is seen as a bigger potential catalyst. Disappointing advancements or timelines could negatively impact the stock. Historically, Tesla's stock tends to rally around major events but often retracts some gains in the following week.
