Should you buy Tesla stock before October 10?

October 10 could be the most important day of adzehis (TSLA 2.46%) history. In two weeks, investors will get a front-row seat to the future of Elon Musk’s electric vehicle (EV) empire. The stakes are high and the margin for error is virtually non-existent.

Let’s dive into what makes this moment so important for Tesla.

What’s happening on October 10?

Many car manufacturers are interested in the development of autonomous vehicles. Tesla has spent years building a self-driving platform called Full Self-Driving (FSD), and on October 10, the world can get a preview of how this technology will shape the company’s future.

Tesla refers to the high-profile event as “We, Robot.” Musk used the names “Robotaxi” and “Cybertaxi” for the company’s self-driving platform.

Image source: Getty Images.

Why is the Robotaxi event so important to Tesla?

OK, why is this event so important? For starters, it was originally scheduled for August. Now that the event has been postponed by three months, expectations are even higher.

But the main reason the Robotaxi event is a pivotal point in Tesla’s history is that investors can finally get a detailed look at the company’s artificial intelligence (AI) progress.

In a way, investors might think of self-driving cars as giant computers controlled by AI and robotics technology. FSD and Robotaxi are widely seen as the major growth catalysts that could spur renewed interest in Tesla’s electric vehicles and allow the company to enter and disrupt new markets, including ride-hailing, car rental and delivery services.

If the Robotaxi event is a disappointment or an unforeseen glitch occurs, you can be sure that the bears will come out of their caves and relentlessly question Tesla’s capital expenditures (capex) and research and development (R&D) investments.

Is Tesla stock a buy before October 10?

Let’s take a trip down memory lane. In 2019, something unexpected happened when Tesla unveiled its Cybertruck SUV. During the demonstration, Tesla’s chief designer, Franz von Holzhausen, threw a ball at the truck’s “armored glass” windows. The windows were broken. This was not supposed to happen.

Embarrassing? Yes. Harmful? Not.

Although initial failures with the Cybertruck inspired some reputational damage and delayed launches for Tesla, the wait seems to have been worth it. Despite being new to the market, the Cybertruck is outselling EV trucks I see, Rivianand many others.

A hiccup with the Robotaxi event won’t spell the end of Tesla. However, I see the Cybertruck crash and the Robotaxi reveal as very different.

Despite the hype, Tesla’s future does not depend on the Cybertruck. In a world where the SUV was scrapped and never launched, Tesla would still be a high-end EV maker.

On the other hand, Musk himself referred to Tesla as a robotics business. If the company can’t get Robotaxi to scale, the long-term growth narrative surrounding Tesla has more than a few cracks. This brings me to another important detail.

Tesla shares are up 22% in September (at market close on September 25). I think the momentum traders have arrived and are trying to take advantage of the volatility trends as the Robotaxi event approaches.

Following day traders in momentum plays is usually a bad idea. As an investor in Tesla stock, I encourage others to sit on the sidelines for now.

The prudent strategy is to tune in to the Robotaxi event and see what Musk and the team are really showing. The momentum following the event will eventually die down, and investors will have ample opportunity to snap up Tesla stock at more reasonable valuations once the company proves its AI ambitions are paying off.