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Tesla (TSLA) Robotaxi Event Preview

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Tesla is on the Mend

Since its climax top November of 2021 at over $400 a share,Tesla ((TSLA - Free Report) ), the world’s leading EV maker, has underperformed. Lower margins, falling vehicle prices, higher interest rates, and a bear market in China (one of its biggest markets) have led to TSLA being the worst-performing “Magnificent 7” stock.

Nevertheless, over the past six months, the company and the stock have turned the corner. Margins have increased, the auto market normalized, the Fed cut rates by 50 bps, and the Chinese government announced a massive monetary stimulus package. Most importantly, CEO Elon Musk overwhelmingly won the vote to receive his hefty pay package and have Tesla headquarters move to Texas.

As a result, Tesla is up 38% over the past six months, outperforming the S&P 500 and competitors like General Motors (GM), Toyota Motors (TM), and Ford Motors (F).

Investors Await Tesla Robotaxi Event

That said, Tesla’s most highly anticipated event in years will take place Thursday. After delaying the event several times (it’s common for Tesla to set aggressive deadlines), Tesla will finally unveil its Robotaxi at Warner Brothers Discovery studio in Burbank, California, at 8 PM EST in an event dubbed “We, Robot.”

Robotaxi Event: What to Watch

Investors should expect Tesla to unveil a Robotaxi. Because Google’s (GOOGL) Waymo is in the pole position in the robotaxi industry as it already has clients in several active cities using its Robotaxis, the most critical commentary for investors to look for is a timeline and a path to crossing over stubborn red tape. Because the Robotaxi has already been delayed several times, Tesla bulls will want to see CEO Elon Musk and his team provide a clear timeline for going live.

Also, Wall Street has speculated that there will be some surprises, maybe in the form of its humanoid robot, a partnership with a ridesharing company like Uber (UBER), or food delivery for a fast-food leader like McDonald’s (MCD). Furthermore, because the event is so hyped it may be a classic “sell the news” event. That said, the pullback recently decreases the odds of such a phenomenon.

 


 


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