It's the Robotaxi week: Here are the key investor questions

Investing.com -- As Tesla (NASDAQ:TSLA ) prepares to host its highly anticipated Robotaxi event on October 10, investors are eager to understand what the company will reveal.

According to Bernstein, significant uncertainty surrounds Tesla's announcements, with potential updates on robotaxi trials, self-driving progress, and possibly new vehicle models.

However, the firm warns that Tesla's history of being overly optimistic, particularly with its Full-Self Driving (FSD) technology, means investors should be cautious about the devil in the details.

Bernstein anticipates that Tesla will "almost certainly demo purpose-built robotaxi(s)" and a ride-hailing app, as well as provide updates on FSD progress and roadmap.

They note that "Tesla has already demonstrated mock-ups of its robotaxi ride-hailing app, including a 'summon' button and estimated wait times."

Tesla is also expected to announce self-driving trials in one or more cities, likely starting in Texas. Beyond these, there's speculation about possible previews of Tesla's new "2.5" models and updates on its Optimus robot, though these are less certain.

However, Bernstein notes that while the event will likely be long on vision, it may fall short of immediate revenue-driving deliverables.

Key investor concerns include Tesla's path toward regulatory approval, FSD backward compatibility with existing Tesla models, and Tesla's competitive edge against rivals like Waymo.

The Bernstein note lays out ten key investor questions, including, "Does Tesla believe it can exceed the safety track record of prevailing LiDAR systems with its camera-only approach?" and "How does Tesla plan to scale its robotaxi service, and will it partner with existing ride-hailing networks?"

Ultimately, Bernstein remains cautious. Despite the excitement, they believe Tesla faces significant technological and regulatory hurdles in capturing sustained profits from robotaxis, and caution that the event could be a "sell-the-news" moment.

"Accordingly, we suspect this could be a "sell the news" event, consistent with most Tesla announcements historically, unless updates on Model 2.5 (or 2) are significant," writes Bernstein.

Source: Investing.com