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One of Tesla's biggest bulls 'disappointed' after Robotaxi event

Published 10/11/2024, 10:14 AM
Updated 10/11/2024, 10:35 AM
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Investing.com -- Morgan Stanley analysts expressed disappointment following Tesla (NASDAQ:TSLA)'s highly anticipated "We, Robot" event, highlighting a lack of critical details regarding Full Self-Driving (FSD) technology, ride-share economics, and a go-to-market strategy for autonomous vehicles.

Tesla shares are down more than 8% in early Friday trading, with many analysts noting the lack of details included in the event.

Tesla showcased its expected "cybercab" during the event, but Morgan Stanley noted that the presentation failed to provide significant new information. The research firm has been one of the biggest Tesla bulls on the Street.

"We were overall disappointed with the substance and detail of the presentation," analysts said in a note.

Heading into the event, Morgan Stanley had anticipated key updates on Tesla's FSD system, such as quantifiable improvements in terms of miles without disengagement, but these details were missing.

The firm also expected insights into the go-to-market strategy for Tesla's supervised and unsupervised ride-sharing services, including economic analysis and total addressable market (TAM) estimates.

"We had expected at least some incremental information around the 'rate of change' of the FSD system," they explained.

Moreover, Morgan Stanley said the event offered no meaningful discussion of Tesla's partnership with xAI or any potential updates on Tesla's "Master Plan 4," leaving the analysts with the sense that the event did not significantly advance Tesla's narrative as an AI company.

As a result, Morgan Stanley "anticipates TSLA to be under pressure following the event." Despite the assessment, Morgan Stanley maintained an Overweight rating on Tesla shares.

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