Innovation

Tesla Postpones Robotaxi Reveal to October for Additional Prototypes

12 July 2024

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Zaker Adham

Summary

Tesla's highly anticipated robotaxi reveal event has been postponed to October, sparking a 7% decline in the company's stock.

The electric vehicle (EV) giant decided to delay the event to allow more time for engineers to build additional prototypes, according to Bloomberg reports. This move follows heightened market expectations and recent positive momentum from a better-than-expected Q2 2024 deliveries report.

Initially scheduled for August, the robotaxi event had significantly boosted Tesla shares. Investors were excited about the potential new product, leading to two strong stock rallies. However, the delay has triggered a swift market reaction, with a notable increase in net put premium and a decrease in net call premium.

Tesla's upcoming robotaxi is expected to utilize the same platform as the anticipated $25,000 Model 2. Despite the excitement, Wall Street analysts believe the robotaxi is more of a long-term play, with no immediate financial impact. Tesla still faces challenges in achieving Level 5 autonomous driving capabilities necessary for a fully functional robotaxi.

Recent optimism around Tesla shares has largely been driven by improving quarterly deliveries and a positive outlook on gross margins. For instance, Goldman SachsLatest Tesla recently raised its price target for Tesla to $248, citing higher deliveries and increased market multiples. However, Goldman also cautioned about potential weaker market conditions affecting earnings in the short to intermediate term.