Tesla sets the course for the future of autonomous driving

The tension on Wall Street is palpable as Tesla invites attendees to its highly anticipated "We, Robot" event. The question preoccupying analysts: What specific announcements can be expected from CEO Elon Musk and his team? While the immediate marketability of autonomous robotaxis remains uncertain, it is the vision for the next five to ten years that truly matters. Adam Jonas of Morgan Stanley, who names Tesla as his "top pick" in the automotive sector, advises clients to moderate their expectations. A demonstration of the latest FSD software and an autonomous "CyberCab" on a closed course is anticipated. Interestingly, Tesla plans to present two approaches to autonomous driving: a fully autonomous, app-based CyberCab and a supervised autonomous driving service. The latter could hold the greater surprise in the near term. The vision being proposed is the utilization of existing Tesla vehicles for the planned driving service—a true gamechanger if this existing fleet is combined with FSD and a new mobility app. Morgan Stanley is optimistic with an overweight rating and a price target of $310 for Tesla. Other analysts also expect the unveiling of a new Tesla model. Edison Yu from Deutsche Bank points to a more cost-effective vehicle that could enter production next year. Meanwhile, Yu remains cautious about the immediate market reaction, despite his buy recommendation and a price target of $295. Garrett Nelson from CFRA shares similar expectations for a more affordable Tesla EV. However, he is skeptical regarding the imminent launch of a robotaxi fleet. Technological challenges and regulatory hurdles still stand in the way, according to Nelson, who maintains a hold rating and a price target of $240. Dan Ives from Wedbush predicts that the event will highlight Tesla's long-term vision, deeply rooted in AI and autonomous driving. With an outperform rating and a price target of $300, Ives sees a turning point in Tesla's corporate history, overshadowing the era of the Model 3 and Y.