Place your bets
It’s finally here. Tesla (TSLA) will hold its ‘We Robot’ event tonight at 10 pm Eastern time at Warner Bros’ Hollywood studio near Los Angeles. The event was delayed from August 8, which raised expectations that Tesla will show a working prototype and lay out an aggressive autonomous driving plan. While some are hoping the event will be a significant catalyst for TSLA shares, a majority of Wall Street Breakfast subs expect only a slight gain or dip.
What to expect: While Tesla has kept the design of the robotaxi a secret, sources told Bloomberg that the Cybercab has two front seats and two doors that open upward like butterfly wings. There has also been plenty of speculation that Tesla will show off a new cheaper model, a robovan capable of carrying up to 12 people, a new version of the Optimus humanoid robot, plans for an autonomous semi, and other AI use cases.
Word on the Street: Wedbush analyst Dan Ives expects Tesla to unveil game-changing autonomous technology, adding that it is a powerful robotics/AI play in the future rather than just an electric vehicle maker. Of course, there is the risk that Tesla underwhelms investors. “If they show something that doesn’t actually demonstrate the technology, a prototype of a vehicle that doesn’t move, that’s going to go over like a lead balloon,” warned Deepwater Asset Management’s Gene Munster.
SA commentary: “I believe the robotaxi event is priced into shares and any movement post-event will be the result of tactical and momentum trading,” said Seeking Alpha analyst Michael Del Monte. Luca Socci prefers to profit from TSLA’s recent surge and redeploy gains elsewhere. But PropNotes is more bullish, forecasting shares to be worth $250-$350 by next week, after exploring three potential outcomes from the event.
