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.
Sign up for Kiplinger’s Free E-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
-
Stock Market Today: Have We Seen the Bottom for Stocks?Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
-
Is the GOP Secretly Planning to Raise Taxes on the Rich?Tax Reform As high-stakes tax reform talks resume on Capitol Hill, questions are swirling about what Republicans and President Trump will do.
-
Stock Market Today: Have We Seen the Bottom for Stocks?
Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
-
Social Security Is Taxable, But There Are WorkaroundsIf you're strategic about your retirement account withdrawals, you can potentially minimize the taxes you'll pay on your Social Security benefits.
-
Serious Medical Diagnosis? Four Financial Steps to TakeA serious medical diagnosis calls for updates of your financial, health care and estate plans as well as open conversations with those who'll fulfill your wishes.
-
What Wall Street's CEOs Are Saying About Trump's TariffsWe're in the thick of earnings season and corporate America has plenty to say about the Trump administration's trade policy.
-
To Stay on Track for Retirement, Consider Doing ThisWriting down your retirement and income plan in an investment policy statement can help you resist letting a bear market upend your retirement.
-
How to Make Changing Interest Rates Work for Your RetirementHigher (or lower) rates can be painful in some ways and helpful in others. The key is being prepared to take advantage of the situation.
-
When to Sell Your StockKnowing when to sell a stock is a major decision investors must make. While there's no one correct answer, we look at some best practices here.
-
Within Five Years of Retirement? Five Things to Do NowIf you're retiring in the next five years, your to-do list should contain some financial planning and, according to current retirees, a few life goals, too.
