After Tesla (TSLA) stock got a pop following news of the company’s latest autonomous milestones, one prominent Tesla analyst peered into the crystal ball to see what Tesla intends to do next with robotaxis.
In a note published Thursday night, Morgan Stanley’s Adam Jonas offered up what investors might expect at Tesla’s upcoming robotaxi day, scheduled for Oct. 10 and set to take place at Warner Brothers Studios in Burbank, Calif.
Jonas reiterated that the firm is still bullish long-term on Tesla — the bank named the EV maker its “top pick” in the auto space — but admits clients need to “keep expectations well managed” for the event.
“What is our guess of what to expect here? A demonstration of the latest iteration of FSD [full self-driving] (version 12.5 or later) and a demonstration of a fully-autonomous ‘cyber-cab’ in what we expect to be a closed/semi-closed course,” Jonas wrote.
While the reveal of the robotaxi, or “cyber-cab,” as Jonas calls it, is expected, what could be surprising is what else investors might see. Jonas predicts that engineers and designers might “show off a few other things,” given the extra time they gained when Musk pushed back the robotaxi reveal from August.
“Could we see an electric plane? A boat? The latest gen Optimus robot flipping burgers at a Tesla Diner?” Jonas asked. Tesla has been known to show off unrelated products or initiatives at its special events (who can forget the dancing “Optimus” robot at its first AI day?), with the aim to wow investors, boost marketing, and even aid in recruitment.
But the main focus for Tesla, and Jonas’s long-term bull thesis for Tesla, surrounds initiatives like self-driving and robotaxis, ostensibly powered by Tesla’s investments and developments in AI and supercomputing.
Earlier this week, Tesla revealed its latest AI milestone roadmap, with targeted dates of FSD deployments in the European Union and China in Q1 of 2025, pending regulatory approval. Tesla shares initially popped on the news, though they pared those gains on Friday.
Acquiring regulatory approval could be a big sticking point for Tesla, which isn’t operating FSD in a test capacity yet in Europe but is doing some limited FSD testing in Shanghai.
With regard to robotaxis, rivals such as Alphabet’s Waymo and GM’s Cruise are already doing tests and rideshare pickups in certain cities, including San Francisco, Phoenix, and Dallas.
Tesla’s permits in the US for robotaxi testing are limited too. Jonas notes that according to the California DMV, Tesla has permits for autonomous vehicle testing “with a driver,” but does not currently hold a permit for autonomous vehicle testing or deployment without a driver.
Nevertheless, investors may hear more about those permits and test sites during Tesla’s Oct. 10 event, which will be crucial for Tesla bulls like Jonas building their case for the stock.
Jonas and Morgan Stanley currently have an Overweight rating and “top pick” designation for Tesla, with a $310 price target.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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