Tesla stock news today: what’s happening with Robotaxi Day?

Over the past month, Tesla stock has already risen by about 12-17% as anticipation builds. Analysts consider Tesla's upcoming Robotaxi Day to be a significant event for the company. The expected unveiling of Tesla’s autonomous vehicle, rumored to be named the Cybercab, is anticipated to drive the stock higher in the short term.

Challenges that Tesla are facing in 2024

Tesla (TSLA -0.95%) shareholders have faced a challenging 2024. While the S&P 500 has gained 21%, Tesla's stock has experienced significant volatility, leaving it mostly flat for the year. Increased competition and signs of consumer fatigue have weighed on the company’s performance. Although the stock continues to command a premium valuation, its ability to sustain this is uncertain unless CEO Elon Musk can revitalize the company.

Tesla will host its long-awaited Robotaxi event on Thursday, where the company is set to unveil the self-driving car Musk has teased for years.

Some Wall Street analysts say it could be a pivotal moment for Tesla. The company's stock is down 40% from its record high in 2021, and investors are looking for fresh catalysts amid concerns about demand and rising competition in the electric-vehicle market.

Robotaxi Event May Rocket Tesla Stock

Tesla’s highly anticipated Robotaxi is about to make its debut, and the entire automotive industry is watching closely. This autonomous taxi is expected to redefine expectations with its cutting-edge technology. Tesla holds a significant advantage over competitors thanks to its extensive data collection—millions of miles driven—and years of continuous improvements to its autonomous driving software.

“Few industry events have been as widely anticipated as Tesla’s Robotaxi Day,” says Wolfe Research analyst Emmanuel Rosner. “The opportunity is massive but they still have a lot to prove.”

The highlight of Robotaxi Day will undoubtedly be Tesla's update on its self-driving car program. Analysts at McKinsey & Company project that the market for autonomous ride-sharing services could generate $300 billion to $400 billion in revenue by 2035, with a significant portion coming from high-margin services and licensing opportunities. If Tesla can successfully implement the technology required for robotaxi services, it could not only validate its current valuation but potentially drive it even higher.

The robo-taxi business has the potential to be big, if it pans out. RBC analyst Tom Narayan says it could be worth up to $400 billion.

Robotaxi Day will be a seminal and historical day for Musk and Tesla and marks a new chapter of growth around autonomous, FSD, and AI future at Tesla. Tesla is the most undervalued AI name in the market and we expect Musk & Co. to unveil some ‘game changing’ autonomous technology at this event.

Tesla Stock Has Jumped 40% Since Musk Unveiled His Robotaxi Plan

Since April 5, when Elon Musk revealed plans for the Robotaxi event, Tesla’s stock has surged more than 40%, maintaining those gains even after the event was postponed.

However, Wells Fargo analyst Colin Langan has set a $120 price target for Tesla—roughly half of its current value—as part of the bank's tactical trading ideas for the fourth quarter. Langan expressed skepticism about whether the upcoming event will meet the high expectations of Tesla enthusiasts, cautioning that investors might shift their focus to weakening fundamentals.

These concerns include forecasts for slowing delivery growth as demand for electric vehicles declines, and the limited effectiveness of price cuts to boost sales. Langan also pointed out that Musk has been promising robotaxis "by year-end...for years," while experts believe the technology is still a long way off and highlight significant safety concerns surrounding Tesla’s autonomous driving capabilities.

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