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Investor expectations into Tesla's Robotaxi event 'relatively muted' - Canaccord

Published 10/03/2024, 08:46 AM
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Investing.com -- Investor expectations for Tesla (NASDAQ:TSLA)'s upcoming "We, Robot" event are "relatively muted," according to Canaccord Genuity analysts in a note Thursday.

The firm said the October 10 event, which is expected to focus on Tesla's progress toward autonomous driving and its long-discussed robotaxi technology, has not generated much optimism for immediate breakthroughs.

"With most — including us — skeptical of near-term robotaxi availability, expectations are relatively muted going in," said Canaccord.

However, they still anticipate some "wow" moments during the event, calling it "showtime" for Tesla's vision of the future.

Tesla's recent performance in the electric vehicle (EV) market has drawn praise from Canaccord, despite slightly missing their delivery estimates for the third quarter of 2024.

Tesla reported 462.9k deliveries for the quarter, just below Canaccord's estimate of 469k but slightly above the consensus of 462k.

"A rounding error in our view," the analysts noted. "The real story of Tesla's delivery results was confirmation that the company is outperforming its fellow Western OEMs in a big way," they added.

Canaccord notes that in contrast to its competitors, Tesla has managed to return to year-over-year growth, a trend largely driven by its strong performance in China.

"Tesla, a Western OEM, is holding its own in a highly competitive China auto market because it has a compelling EV — and the others don't," the analysts observed, highlighting how traditional internal combustion engine (ICE) vehicle sales in China are plummeting, while EVs and hybrids surge.

They believe Tesla's ability to succeed in this challenging environment suggests a broader recovery for EVs in general.

As for the upcoming robotaxi event, while there may not be any immediate product launches, Tesla is sure to captivate the market's attention. Canaccord concludes, "Next week, Tesla will provide a glimpse into its robo future. Always interesting, never boring."

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