A Bold Move by Tesla
Tesla TSLA CEO Elon Musk revealed plans to unveil the company’s self-driving robotaxi on August 8, following news of scrapping a lower-priced EV at $25,000.
Analysts’ Perspectives
What Happened: Musk tweeted, “Tesla Robotaxi unveil on 8/8.”
Musk’s announcement followed a Reuters report stating the halt of a low-cost EV, tentatively named Model 2. Musk refuted the report without specifying inaccuracies.
The Debatable Decision
Analysts Weigh In: Gene Munster believes Tesla will prioritize robotaxi over the low-cost EV, foreseeing an industry advantage through autonomous vehicle deployment. In contrast, Gary Black deems this strategy risky and suggests Tesla continues with both projects.
Black cautioned that institutions might divest Tesla stock due to uncertainties around growth and pricing without the realization of robotaxis.
The Market Speculation
ARK Invest Management‘s Tasha Keeney notes the ambiguity around Tesla’s autonomous driving initiatives, influencing analysts to exclude it from the company’s price evaluation. Despite the uncertainty, Keeney remains optimistic about the potential impact of robotaxis on Tesla’s enterprise value.
Why Investors Should Care
Why It Matters: During Tesla’s Q4 earnings call in January, Musk outlined plans to commence low-cost vehicle production at the Texas gigafactory in late 2025. Musk envisioned a groundbreaking vehicle and manufacturing system, anticipating production challenges.
Historically, Musk championed both a low-cost EV and a robotaxi concept. Initially dismissing the former in favor of robotaxis, it was Tesla chief designer Franz von Holzhausen who convinced Musk that both projects could coexist on the same platform.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Read Next: Elon Musk Reacts As Tesla Celebrates 1B Miles Driven With FSD Software: ‘Won’t Be Long Before…10B Miles’
Elon Musk, Tesla illustration via Shutterstock.
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