The highly anticipated Tesla Robotaxi Day from Tesla Inc TSLA on Oct. 10 will likely see the unveiling of robotaxis and demos, but analysts think that several other unannounced items could be bigger catalysts for the stock.
The Tesla Analysts: Cantor Fitzgerald analyst Andres Sheppard maintained a Neutral rating with a $245 price target.
Stifel analyst Stephen Gengaro reiterated a Buy rating with a $265 price target.
Cantor Fitzgerald on Tesla: Robotaxi Day on Oct. 10 could showcase Tesla's autonomous capabilities, Sheppard said in a new investor note.
"We continue to believe that TSLA will roll out Robotaxi in phases, first in select markets and then expand over time," Sheppard said.
The analyst highlighted the fact that regulations for self-driving cars vary by state with 29 states plus Washington, D.C., previously passing legislation on autonomous vehicles.
Sheppard said California has been the leader in autonomous vehicle regulations while states such as New York require a human driver present in vehicles testing the technology.
Tesla's vehicle delivery for the third quarter beat estimates, but energy storage figures disappointed, the analyst added.
The analyst said electric vehicles continue to cost more than traditional vehicles, with August figures coming in at an average of $56,574 and $47,000, respectively.
"We expect the delta between prices to continue in 2025 and 2026, with several EV OEMs introducing lower-priced vehicles into the market."
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Stifel on Tesla: While most analysts and investors are looking at vehicles at Tesla's Robotaxi Day, Gengaro shared a key item that could be highlighted at the event.
"We expect the company to unveil a concept car version of a Robotaxi. While this will likely be well-received, we believe incremental information on Full Self-Driving technology will be a critical element to the event," Gengaro said.
The analyst said they are confident in Tesla's AI-based FSD technology and think the FSD details could be "an important part of the stock price reaction."
Gengaro noted Tesla CEO Elon Musk said the event would be "one for the history book," which could imply that items such as AI, FSD and Robotaxi will all be highlighted.
Tesla unveiling a lower-priced electric vehicle model at the event is another speculated item to watch, Gengaro added.
"We believe details on vehicle specifications, price, and timing would be a plus and provide a positive catalyst for the shares."
Gengaro also said that Optimus could make an appearance or be part of an update to investors at the event.
The analyst's $265 price target is based on a sum-of-the-parts valuation with the core business worth $197 per share, FSD worth $57 per share and Robotaxis worth $11 per share.
TSLA Price Action: Tesla stock is down 1.94% to $245.22 on Monday versus a 52-week trading range of $138.80 to $271. Tesla stock is down 2% year-to-date in 2024.
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