Tesla’s upcoming Robotaxi Event on October 10 in Los Angeles could be a significant catalyst for the stock, according to Bank of America analysts. The event, initially scheduled for August, was postponed to allow for engineering changes and the creation of multiple prototypes.
While expectations for the event have been tempered, it still holds potential for investors to gain insights into Tesla’s Full Self-Driving (FSD) technology and its plans for a robotaxi business.
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BofA expects Tesla to showcase advancements in its FSD technology and AI capabilities, highlighting the company’s progress in driving over 600 million miles with FSD 12, requiring interventions only once every 10,000 miles. The bank notes that Tesla is working towards a generalized robotaxi solution that operates beyond geo-fenced areas, which will require further neural network training.
Tesla is also expanding its AI infrastructure, aiming for 85,000 Nvidia H100 chips active by the end of 2024. The event is expected to see the unveiling of a prototype of the new Cybercab, a two-door sedan.
BofA believes that automakers like Tesla, who have control over car design, features, and performance, are well-positioned to scale robotaxi services quickly. Tesla’s showmanship at events like this tends to boost the stock. While the exact details are unpredictable, BofA believes Tesla may provide updates on its market targets, FSD scalability, AI-driven revenue potential, and other strategic insights that could drive further optimism for investors.