Tesla's (TSLA) highly anticipated robotaxi event is just days away, with the big reveal slated for Thursday, October 10. TSLA stock has been gaining ground in the weeks leading up to the event, rising 17% in the past month, and investors are hopeful the robotaxi event will create another catalyst to drive shares higher.
The event has been dubbed "We, Robot" and will give Wall Street its first look at the Tesla Cybercab prototype and the platform that owners and riders will use to book rides. In addition, Tesla is expected to release an update to its Full Self-Driving (FSD) technology, which will enable the robotaxis to function, as well as a timeline to the production of the Cybercab and the launch of the service.
However, some analysts on Wall Street think Tesla is simply playing catch-up at this point.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"While Tesla is clearly focused on launching a robotaxi, Waymo and Cruise are already operating robotaxis in the U.S. today," says Bernstein analyst Toni Sacconaghi Jr. "The available data is clearly imperfect, but as of today Tesla appears to be lagging behind the leaders in the space."
Sacconaghi adds that Waymo, which is owned by Google's parent company Alphabet (GOOGL), has been working with regulators on its self-driving cars for over 10 years, while Tesla has not even begun the process.
Other Tesla news
On Wednesday, October 2, Tesla released its delivery numbers for the third quarter. Deliveries totaled 426,890, an increase of 4% from the prior quarter and 6% from the prior year.
Meanwhile, in a separate announcement on Thursday, October 3, Tesla said it recalled 27,000 Cybertrucks due to an issue with the rearview camera image not immediately activating when the vehicles were placed in reverse, according to the Associated Press.
Is TSLA stock a buy, sell or hold?
Wall Street is on the sidelines when it comes to the Magnificent 7 stock. According to S&P Global Market Intelligence, the average analyst target price for TSLA stock is $208.64, representing a discount of more than 15% to current levels. Additionally, the consensus recommendation is a Hold.
Financial services firm CFRA Research is one of those with a Hold rating on Tesla stock, along with a $240 price target.
"We think the stakes are high, and there is more risk to the downside than upside given the stock's recent run-up and the likelihood that the event could disappoint," says CFRA Research analyst Garrett Nelson. "We also note the stock price run-up and then 'sell the news' pattern of major Tesla events historically. Specifically, we are looking for more visibility regarding intermediate-term earnings growth."
Related Content
- Top 10 Electric Cars in the US – Most Popular EVs
- Analysts' Top S&P 500 Stocks to Buy Now
- How the EV Tax Credit Works 2024
-
New RMD Rules: Can You Pass This Retirement Distributions Tax Quiz?Quiz Take our RMD quiz to test your retirement tax knowledge. Learn about RMD rules, IRS deadlines, and tax penalties that could shrink your savings.
-
I'm 61 and need $50,000 for home repairs. Should I borrow given today's rates or take a withdrawal from my $950,000 401(k)?We asked financial experts for advice.
-
Headed for the Retirement Red Zone? This Eight-Step Game Plan Helps to Avoid FumblesThese strategies help safeguard your nest egg and ensure long-term financial success during the five years before retirement and the five years after.
-
I'm a Financial Planner: This Is How You Can Get Started With RMDsThe IRS will come knocking for its share of your tax-deferred retirement savings when you hit 73, but planning ahead for RMDs will ensure you're ready.
-
How Will You Replace Your Paycheck in Retirement? A Financial Adviser's Tips on Income PlanningBills don't stop once you retire — and you can't expect your Social Security checks to cover them all. Don't risk running out of money. Instead, make a plan.
-
From Pets to Paintings: The Little Things That Can Cause Big Estate TroubleSentimental items might have little monetary value, but their disposition can cause hurt feelings. Talking about who wants what and labeling items can help.
-
The Clock Is Ticking: Take Advantage of These Retirement Tax Benefits While They LastRecent tax changes, including an extra $6,000 deduction for those 65 and older, present a golden opportunity for retirees to reduce their tax bills.
-
I'm a Financial Adviser: This Is Why Unmarried Same-Sex Couples Need an Estate PlanWhen illness or death occurs within an unmarried same-sex partnership, family members can step in and push the surviving partner out. An estate plan is vital.
-
Stocks Bounce But End With Big Weekly Losses: Stock Market TodayThe stock market rout continued on Friday, but a late-day burst of buying power brought the main indexes off their session lows.
-
Costco Gold Bars Keep Selling Out. Are They a Smart Investment?How Costco's bullion program works, how to get the best deal and whether it makes sense for investors.
