Investor Expectations in Tesla’s Robotaxi Event Are ‘Relatively Low’

Investing.com — Investor expectations for Tesla’s (NASDAQ: ) upcoming “We, Robot” event are “relatively low,” according to analysts at Canaccord Genuity in a note on Thursday.

The firm said the Oct. 10 event, which is expected to focus on Tesla’s progress toward self-driving and its much-discussed robotaxi technology, did not generate much optimism for immediate breakthroughs.

“While most — including us — are skeptical about the near-term availability of robotaxis, expectations are relatively low,” Canaccord said.

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 not forecasting deliveries for the third quarter of 2024.

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

“A rounding error in our opinion,” the analysts noted. “The real story of Tesla’s delivery results was confirmation that the company is vastly outperforming its Western OEM peers,” they added.

Canaccord notes that unlike its competitors, Tesla has been able 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 China’s highly competitive auto market because it has a compelling EV — and others don’t,” analysts noted, noting how sales of traditional internal combustion engine (ICE) vehicles ) in China are collapsing, while EVs and hybrids are on the rise.

They believe Tesla’s ability to succeed in this challenging environment suggests a broader recovery for electric vehicles in general.

As for the upcoming robotaxi event, while there may not be any immediate product launches, Tesla is sure to capture the market’s attention. Canaccord concludes: “Next week, Tesla will offer a glimpse of its future robot. Always interesting, never boring”.