$Tesla(TSLA.US)Robotaxi release may boost the stock price before the event, but sustainability remains to be seen

UBS (J. Spak, 24/09/19)

UBS stated that as Tesla's Robotaxi event on October 10 approaches, market expectations are heating up, especially among tech, growth, and AI investors who are showing more enthusiasm, while automotive and industrial investors remain relatively conservative. The event provides Tesla with an opportunity to demonstrate the rationale behind its valuation and future growth potential to investors. UBS believes Tesla's stock may show relative strength before the event, but whether it can maintain momentum afterward remains uncertain.

Despite Tesla's technological progress, UBS noted that large-scale Robotaxi deployment will take time, particularly given challenges like local regulations and operational logistics. The event will be held at Warner Bros. Studios—a controlled environment that reduces the chance of errors—but Tesla won't be able to showcase its real-world autonomous driving services in California.

The report also highlighted key topics for the event: improvements in FSD, Robotaxi's operational model, its economics and total addressable market, AI investments and competitive advantages, vehicle demonstrations, and potential new product announcements.