Tesla (TSLA) will be highlighting its self-driving technology at its Robotaxi Day event on October 10 in Hollywood, California. This could be a chance for the EV major’s founder and CEO, Elon Musk, to convince investors that the company is still focusing on innovation.
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Why Is TSLA’s Robotaxi Day an Important Event?
Tesla’s once-dominant market share in the electric vehicle market has narrowed as it faces rising competition globally. Competitors such as Ford Motor (F) and General Motors (GM) in the U.S., and Chinese companies like NIO (NIO) have all made strides in the EV sector, including the development of hybrid vehicles. However, Tesla has chosen not to pursue the development of hybrid vehicles.
Additionally, Tesla’s sales in the U.S. are declining. According to Barron’s report, citing data from Ward Automotive, Tesla’s U.S. sales dropped nearly 10% year-over-year through August, while overall EV sales grew a modest 7%. In contrast, Tesla’s sales had grown by 25% last year compared to the industry’s overall growth of 46% that year. Regarding Wall Street’s expectations, Tesla is expected to deliver around 1.8 million vehicles this year, but well below previous analyst forecasts of 2.3 million.
Furthermore, the lack of affordable models and sufficient charging infrastructure has allowed hybrids to capture some of Tesla’s market share.
Wall Street Analysts’ Expectations of Tesla’s Robotaxi Day
Considering this scenario, Wall Street analysts have high expectations from TSLA’s Robotaxi Day event. Many analysts expect that TSLA may potentially unveil a low-cost car, called the Model 2, besides the robotaxi. It is expected that such a car priced under $30,000 could revive the company’s sales and significantly expand its addressable market.
However, as William Blair five-star rated analyst Jed Dorsheimer pointed out the event could turn out to be disappointing, too. The analyst commented, “I would not be surprised, and fully expect, the stock to pull back on the event. The trend for most of Tesla’s analyst days/big announcements is the stock runs into those as expectations rise…then there is a disappointment.”
The analyst has a Buy rating on TSLA stock.
What Is the 12-month Price Target for Tesla?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on 12 Buys, 16 Holds, and seven Sells. Over the past year, TSLA has declined by more than 3%, and the average TSLA price target of $210.91 implies a downside potential of 15.6% from current levels.
