The Robotaxi event is a potential big catalyst for Tesla stock

Investing.com -- Tesla (NASDAQ:TSLA )'s upcoming Robotaxi Event on October 10 in Los Angeles could be a catalyst for the stock, according to Bank of America analysts.

Initially scheduled for August, the event was postponed to allow for an engineering change to the robotaxi vehicle, known as the Cybercab, and to build multiple prototypes.

Expectations for the event have tempered, but it still holds significant potential for investors to gain insights into Tesla's Full Self-Driving (FSD) technology and its plans for a robotaxi business.

"TSLA is likely to showcase advancements in its FSD technology and artificial intelligence (AI) computing capabilities," says BofA.

Since the introduction of FSD 12 in early 2024, BofA says Tesla vehicles have driven over 600 million miles using the software, with interventions required only once every 10,000 miles.

The bank notes that Tesla is working toward a generalized robotaxi solution that operates beyond geo-fenced areas, which will require further neural network training.

The company is also said to be expanding its AI infrastructure, aiming to have 85,000 Nvidia (NASDAQ:NVDA ) H100 chips active by the end of 2024.

Tesla is expected to unveil a prototype of the new Cybercab, a two-door sedan, during the event.

BofA believes that automakers like Tesla, who have control over car design, features, and performance, are well-positioned to scale robotaxi services quickly.

BofA analysts also noted that Tesla's showmanship at events like this tends to boost the stock. While the exact details are unpredictable, BofA believes Tesla may provide updates on its market targets, FSD scalability, AI-driven revenue potential, and other strategic insights that could drive further optimism for investors.

Source: Investing.com