With Tesla’s hotly anticipated robotaxi event hours away, investors will soon get a glance at what CEO Elon Musk has called the CyberCab.
After a decade of unfulfilled promises to deliver autonomous vehicles, capable of traveling reasonable distances safely without a human at the wheel, there’s a hefty dose of skepticism about what Tesla can do technologically, and when its robotaxi might actually hit the market.
The event comes a week after Tesla reported third-quarter deliveries of 462,890, lifting the number to 1.35 million for the year so far.
For all of last year, Tesla reported deliveries of 1.81 million.
Tesla was once seen as a pioneer in autonomous vehicle development, but has never managed to deliver or demonstrate robotaxi technology.
Investors will get a first look at what CEO Elon Musk has dubbed the CyberCab in the hours leading up to Tesla’s much awaited robotaxi event.
There is a great deal of skepticism about what Tesla can achieve technologically and when its robotaxi might actually hit the market after a decade of unfulfilled promises to deliver autonomous vehicles, capable of traveling reasonable distances safely without a human at the wheel.
Kicking off at 7:00 p.m. is the robotaxi day, also known as “We, Robot.”. me. At a Warner Bros., Pacific time. studio located in Burbank, California, and will be broadcast live on X.
In a preview on October 20, CFRA analyst Garrett Nelson issued a warning. 4. A Tesla robotaxi may appear more advanced in closed course on a movie studio lot than it would in regular traffic or on public roads. The stock has a hold rating from CFRA.
On Thursday, Tesla’s stock dropped by roughly 1% to $238.77. They’ve now dropped by nearly 4% for the year and are over 40% below their record set in 2021.
The incident occurred one week after Tesla revealed 462,890 units were delivered in the third quarter, bringing the total to 1 point 35 million for the year. Over the course of the previous year, Tesla recorded 1.81 million deliveries.
In their reports, optimistic analysts from companies like Wedbush, ARK, and RBC Capital Markets expressed confidence in the company’s capacity to sustain long-term sales growth while delivering higher-tech products like humanoid robotics, a long-delayed autonomous vehicle, and other AI-driven goods and services.
Deepwater Asset Management’s Gene Munster said on CNBC’s “Fast Money” on Wednesday that he plans to test the robotaxi during the event.
Munster, a longtime supporter of Tesla, predicted that by the end of 2025, the business will introduce robotaxis in certain cities. In addition, he anticipates Tesla to reveal plans to produce an electric van and an affordable EV, which could be little more than a scaled-down Model 3.
The stock, he said, should “make new highs” over the next two years as deliveries pick up speed, even though he expects it to drop after the event.
Although it never succeeded in producing or demonstrating robotaxi technology, Tesla was once regarded as a pioneer in the development of autonomous vehicles. These days, the business is viewed as a laggard.
Waymo from Alphabet in the U.S. S. are currently running robotaxi services for a fee, as are several Chinese companies.
According to a report released on Wednesday by Morgan Stanley analysts, Tesla would have a cost-per-mile advantage over competitors if it could introduce a “level 4” robotaxi—that is, one that can function without a driver at the wheel—using its current “suite of hardware and software.”.
Currently offered as the base Autopilot and the more expensive Full Self-Driving (Supervised) options, Tesla has experienced safety problems with its driver assistance systems in addition to missing deadlines.
The director of the Mason Autonomy and Robotics Center and a professor at George Mason University, Missy Cummings, said Tesla executives ought to be able to explain how they’re addressing the issue of “phantom braking,” which describes situations in which cars with ADAS applied their brakes without warning, even when traveling at high speeds and with no obvious obstructions in their path.
The National Highway Traffic Safety Administration (NHTSA) is still looking into Tesla’s phantom braking issues. Former senior safety advisor to the regulator Cummings said to CNBC, “If they can’t figure out phantom braking for a level 2 car, they can’t figure it out for a level 4 or 5 vehicle.”. Vehicles with level 2 equipment have driver assistance features.
Data tracked by the NHTSA beginning in 2021 shows that there have been 1,399 crashes in which the driver assistance systems of Tesla vehicles were activated within 30 seconds of the collision, with 31 of these collisions having reported fatalities.
Guidehouse Insights analyst Sam Abuelsamid stated that Musk and other Tesla executives ought to be able to specify precisely how they intend for their cars to function in various weather conditions, including fog, rain, snow, and lighting, as well as in dimly lit tunnels.
In addition, he wants Tesla executives to clarify if they will take full responsibility for these cars’ operation. He refers to this as “table stakes for a true robotaxi without human controls.”. “. .
Finally, Abuelsamid wants to know if Tesla intends to sell or lease its robotaxis to end users and fleet operators, or if it intends to own and operate them.
On the automated driving technology front, a lot of businesses have advanced, according to Abuelsamid. However, they have struggled to come up with a potentially lucrative business plan. Tesla is facing many obstacles, and I’m curious about how everything will come together. “.
Watch: It will take five more years before Tesla produces a vehicle akin to Waymo.
