Tesla shares rose slightly in early trading on Monday, extending a solid September gain, after a top Wall Street analyst revised his rating and price target for the electric vehicle group ahead of two key events over the next few weeks.
Tesla shares (TSLA) The stock of Tesla, which will release its third-quarter delivery figures next week, has fallen about 9.5% in the roughly 10 weeks since it delayed the unveiling of its robotaxi, originally scheduled for early August. Elon Musk, the chief executive, said the delay was necessary to “make some important changes that I think would improve the vehicle.”
Musk added that he would be “surprised” if the first unattended rides could not take place by the end of next year.
The new presentation, which is scheduled for October 10 at a Warner Bros. Discovery event (WBD) The Los Angeles study will mark a key turning point for the automaker, which is looking to evolve from its traditional car-making roots to focus on autonomous driving technologies, powered in part by its Dojo ai supercomputer.
Musk, who has staked the group's future on its ability to solve autonomous driving, also wants to launch its Full Self-Driving advanced driver-assistance software in Europe and China next year after a series of regulatory and technological delays.
The robotaxi chronology in focus
Musk told Tesla employees earlier this year that it would be “mandatory” for its North American operations to “install and activate” full self-driving software on new Tesla vehicles, and that staff were required to “take customers on a short test drive before handing them the car.”
“Almost no one realizes how well FSD (supervised) works,” Musk wrote in the memo. “I know this will delay the delivery process, but it is still a strict requirement.”
Goldman Sachs analyst Mark Delaney, who reiterated his “neutral” rating and $230 price target on Tesla shares ahead of the October event, said the details Musk provides during the robotaxi unveiling will be crucial.
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“The timeline for commencing commercial robotaxi operations (including technological readiness and operational, regulatory and logistical considerations) and commercial outlook (including how Tesla's cost structure may compare to competitors) will be key areas of focus for investors,” Delaney said in a note published Monday.
He also suggested that news of a new low-cost Tesla model, a launch that investors have long encouraged Musk to pursue, could be on the table at next month's Los Angeles event.
Delivery figures on deck
“Whether Tesla will provide more details or reveal the new lower-cost model at the 10/10 event has also been a frequent topic in our discussions with investors,” he added.
Tesla, which is scheduled to report third-quarter results on Oct. 16, will also likely release its overall vehicle delivery tally for the three months ended in September early next week.
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The group's sales in China, which had been faltering for much of the year, rebounded strongly in August, according to official figures. But activity in Europe remains noticeably depressed, with sales down 43.2% last month, according to data from the European Automobile Manufacturers Association.
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Goldman's Delaney estimates the third-quarter total will be about 460,000 units, up 4% from the previous three months and about 6% higher than the same period a year ago.
Early estimates suggest Tesla will post earnings of 60 cents a share, down 9% from a year earlier, on revenue of about $25.57 billion.
Tesla shares rose 1.4% in premarket trading, indicating an opening price of $241.50 each.
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