As Tesla’s highly anticipated Robotaxi unveiling event looms just 24 hours away, analysts are scrambling to share their final thoughts on what some are calling the most “widely anticipated” industry event ever. Dan Ives of Wedbush Securities has released his last note prior to the event, offering insights into the potential implications of Tesla’s Robotaxi announcement, its valuation prospects, and possible investor reactions to the unveiling of a self-driving platform.
Ives and Wedbush have already labeled the event as “game-changing,” “pivotal,” and the “next chapter in the Tesla story.” Now, Ives is putting a specific dollar figure on Tesla’s Robotaxi initiative and the company’s development of artificial intelligence and Full Self-Driving (FSD) capabilities. In his Wednesday note, Ives writes that Wedbush believes AI, FSD, and Robotaxi represent a staggering $1 trillion standalone valuation for Tesla.
This projection becomes even more impressive when considering Tesla’s other business segments. The company’s energy division has reported two extremely robust quarters in a row, and it already has an established passenger electric vehicle business. Additionally, projects like Optimus are waiting in the wings. Ives’s projections suggest that Tesla’s total valuation could well exceed $1 trillion. However, the analyst notes that Tesla’s ability to deliver on self-driving technology and successfully deploy a commercial Robotaxi service is one thing, while the stock and company valuation following this upward trend is another matter entirely.
Wedbush’s note also predicts that CEO Elon Musk will address the near-term pain points seen by investors and outline the company’s long-term vision. This comes as Tesla undergoes its second major transformation, comparable only to the Model 3/Y production overhaul. One of the key challenges Musk is expected to address is Tesla’s acknowledgment that the development of Robotaxi and the next-gen platform would translate to a “notably lower” annual growth rate, a point of concern for many investors.
Indeed, Tesla is likely not seeing an increase in demand this year compared to last, with 2024 delivery figures expected to be in line with those of 2023. This stagnation in growth is a factor that cannot be ignored. However, the development of the Robotaxi and potentially new vehicles, such as a $25,000 EV or a Robovan (as predicted by Gene Munster of Deepwater Management), could bring new customers to the table, increase demand for Tesla’s vehicles, and potentially push the automaker over the 2 million units delivered annually mark.
As the event approaches, all eyes are on Tesla to see how it plans to navigate these near-term challenges while pursuing its ambitious self-driving and AI goals. Wedbush, for its part, remains optimistic about Tesla’s prospects, reiterating its ‘Outperform’ rating and maintaining a $300 price target for the company’s stock.
