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
-
Small Businesses Are Racing to Use AIThe Kiplinger Letter Spurred on by competitive pressures, small businesses are racing to adopt AI. A recent snapshot shows the technology’s day-to-day uses.
-
The Me-First Rule of Retirement SpendingFollow the 'Me-First" rule and you won't have to worry about running out of money when the stock market goes south.
-
I'm a Financial Planner: Could Partial Retirement Be the Right Move for You?Many Americans close to retirement are questioning whether they should take the full leap into retirement or continue to work part-time.
-
From Mortgages to Taxes to Estates: How to Prepare for Falling Interest RatesAs speculation grows that the Federal Reserve will soon start lowering interest rates, now is a good time to review your financial plans for housing, estate, taxes, investing and retirement to make the most of potential changes.
-
This Is How Lottery Winners Build Lasting Legacies, From a Financial ProfessionalWinning a massive lottery jackpot, like the recent $1.4 billion Powerball, requires seeking immediate legal and financial counsel, protecting your identity and winnings and planning your legacy.
-
S&P 500 Slips Ahead of Fed Week: Stock Market TodayAll eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
September Fed Meeting: Live Updates and CommentaryThe September Fed meeting is a key economic event, with Wall Street keyed into what Fed Chair Powell & Co. will do about interest rates.
-
I'm an Investment Strategist: This Is How the Fed's Next Rate Move Could Impact Your WalletInterest rate cuts might be coming, which could affect everything from your credit card debt to your mortgage. It's smart to prepare now — here's how.
-
I'm a Retirement Planner: These Are Three Common Tax Mistakes You Could Be Making With Your InvestmentsDon't pay more tax on your investments than you need to. You can keep more money in your pocket (or for retirement) by avoiding these three common mistakes.
-
Want to Shave 10 Hours Off Your Workweek? A Startup Expert Shows How AI Can HelpArtificial intelligence is overhauling how companies operate, freeing up entrepreneurs and their workers to skip the menial stuff and get down to business.
