This week marks a potential new dawn for electric vehicle (EV) manufacturer Tesla (NASDAQ: TSLA), as the company is expected to host its ‘Robotaxi’ event on October 10.
The event, at which Tesla will unveil its autonomous vehicle—a key part of the company’s push into autonomous ride-sharing—is also anticipated to impact TSLA’s share price.
Indeed, the buildup to the event has contributed to Tesla’s recent upward momentum, following a general slowdown in EV demand earlier in the year.
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As a result, TSLA ended the last trading session up almost 1%, with a valuation of $250. This recent momentum has also helped Tesla reverse its 2024 losses, with the stock now up 0.6% year-to-date.
What next for TSLA share price after the Robotaxi launch
Several analysts have shared their outlook on the Texas-based firm when evaluating how the Robotaxi event might affect TSLA’s share price. The event is important as it will likely highlight Tesla’s advancements in autonomous driving technology, showcasing how their Full Self-Driving (FSD) capabilities are integrated into these vehicles.
According to Wedbush’s Dan Ives, the Robotaxi unveiling will be a ‘seminal and historical day’ for the company. On October 1, Ives noted that Tesla’s progress with FSD shouldn’t be viewed solely as growth in the EV space but as the company’s inroads into artificial intelligence (AI). Consequently, he considers TSLA an undervalued AI stock, giving it an ‘Outperform’ rating with a price target of $300.
Although generally optimistic, Deutsche Bank remains cautious. In a note on September 10, the bank’s analyst Edison Yu stated that the high expectations around the launch could make it a ‘sell the news’ event. However, Yu maintains a ‘Buy’ rating with a price target of $295.
Canaccord Genuity analysts expressed more muted expectations for Tesla’s Robotaxi event. In a note on October 3, they voiced concerns about the Robotaxi’s near-term availability. Nevertheless, they described the event as a “showtime” for Tesla’s vision but set a price target of $254.
Elsewhere, analysts at Bernstein believe the Robotaxi rollout will not rescue Tesla, pointing to rocky paths ahead. They cited the regulatory hurdles Tesla faces with the Robotaxis, which could pose a downside risk to the stock.
“We think it is unlikely that Tesla will grow units this year even assuming lower prices and/or very favorable financing. <…> Tesla is behind in gaining regulatory approval for robotaxis…and it may be difficult to overcome without local, ongoing trials,” Bernstein stated.
This outlook follows Tesla’s miss on Q3 2024 delivery estimates. The company delivered 462,890 vehicles for the quarter, slightly missing Wall Street’s estimated 463,310 units.
One notable element is Wall Street’s increasingly divided outlook on Tesla stock in relation to the Robotaxi event. Finbold initially reported on the varied views of experts on the stock.
TSLA stock technical outlook
From a technical perspective, a stock analyst with the pseudonym Market Maestro, in an X post on October 6, stated that the Robotaxi rollout could significantly impact TSLA’s movement. He observed that TSLA’s weekly chart shows a bullish inverse head-and-shoulders pattern, with the stock breaking above a critical neckline resistance level, suggesting potential upside momentum.
Tesla has been trading in a consolidative pattern since 2021, and the recent breakout is supported by increased institutional buying. The Relative Strength Index (RSI) also indicates a bullish signal, reinforcing the momentum shift in Tesla’s favor.
The analyst considers the launch of the autonomous Cybercab a catalyst that could drive its stock price toward the $300–$400 range.
Similarly, TrendSpider’s analysis suggests a potential breakout as the stock nears the end of a prolonged consolidation phase. This analysis highlights a 15-month TTM Squeeze indicator, signaling compressed volatility that could soon be released. Historically, Tesla has experienced strong upward moves following similar consolidations, hinting at the possibility of a significant rally if the pattern repeats.
In summary, Tesla’s upcoming Robotaxi event has the potential to reshape the company’s trajectory. However, with high-profile unveilings, the ultimate impact on Tesla’s stock will depend on how the market responds to its vision for autonomous ride-sharing and real-world execution.
