As Tesla (NASDAQ: TSLA) prepares to launch the robotaxi service in Austin, a Wall Street analyst is skeptical that the new product will meet expectations and warns it could trigger a bearish reaction in the company’s stock.
This follows Tesla CEO Elon Musk’s announcement that the tentative launch date for the public robotaxi service is June 22.
However, Musk noted the date may shift to June 28 due to safety concerns. He emphasized that safety remains the company’s top priority, saying they are “paranoid about safety.”
In response, Wall Street analyst and longtime Tesla critic Gordon Johnson questioned the readiness of Tesla’s Full Self-Driving (FSD) technology, noting it will be an ideal day for bears, he said in an X post on June 11.
Johnson’s safety concerns are based on the Tesla FSD Tracker data, which suggests the company’s autonomous system is involved in a crash every 244 to 492 miles. Citing independent research from AMCI, he added that the technology might fail as frequently as every 13 miles.
The need to suspend Tesla robotaxi launch
He argued that indefinitely delaying the launch would benefit Tesla shareholders by allowing Wall Street to maintain high valuations for a business model that, in his view, doesn’t yet exist.
According to Johnson, a public launch would expose the same shortcomings critics have pointed out since 2018.
Johnson also suggested that a public demonstration of the robotaxi service could begin a decline in hype surrounding FSD.
Drawing comparisons to Musk’s past promises, such as establishing a Department of Government Efficiency and achieving major cost savings, that failed to materialize, he warned that setting a firm date for the rollout may prove to be a strategic misstep.
TSLA stock price analysis
Meanwhile, TSLA shares opened trading on Wednesday up 2.5%, at $334. In the past week, the stock is up almost 5%.
The uptick appears to be driven in part by Musk’s apparent softening of his stance toward President Donald Trump following their public spat. Trump, in turn, has hinted at a willingness to mend his relationship with Musk.
As reported by Finbold, banking giant Morgan Stanley suggested that the spat, which initially triggered a TSLA share price collapse, may have been a “calculated strategy.” The bank maintained its bullish outlook on Tesla, with a price target of $410.
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