Tesla, the prominent electric vehicle manufacturer, has recently faced scrutiny regarding the timeline for its highly anticipated robotaxi deployment. According to a report by UBS Securities, the launch of Tesla's robotaxi is unlikely to see wide-scale deployment 'within the coming years' due to various regulatory hurdles and potential developmental challenges. In a conference call discussing the company's financial outcomes for the second quarter, CEO Elon Musk revealed that the unveiling of the robotaxi has been postponed by a few months, now scheduled for October 10.
This delay allows Tesla to enhance the robotaxi model further, incorporating new features aimed at improving the overall product experience. Recently, Tesla has indicated advancements in its Full Self-Driving (FSD) software, with version 12.5.2 reportedly achieving three times the mileage between necessary driver interventions.
Moreover, the forthcoming version 13 is expected to double this capacity. However, UBS analysts Joseph Spak and Patrick Hummel caution that while these improvements sound impressive, the absence of substantial data on FSD interventions poses challenges in assessing how close Tesla is to realizing a completely autonomous robotaxi.
Their insights suggest that significant work remains before the vehicle can be deemed ready for market. FSD, Tesla's driver assistance software, continues to evolve, though the company recognizes the need for an unboxed manufacturing process to facilitate robotaxi production. Analysts contend that the road to this innovative manufacturing approach comprises numerous delays and challenges, which may extend the vehicle's launch timeline further into the future. The absence of a steering wheel in future models could necessitate Tesla seeking an exception from Federal Motor Vehicle Safety Standards, adding another layer of complexity to the deployment plan.
"We believe (a wide-scale) Tesla robotaxi deployment is unlikely within the coming years," Spak and Hummel noted, emphasizing the need for Tesla to demonstrate that its technology not only works but is also safe and compliant with diverse local regulations. The analysts express skepticism about Tesla unveiling a lower-cost vehicle during the upcoming event, suggesting that the timing might be premature in relation to production capabilities and could negatively impact the sales performance of existing models like the Tesla Model 3 and Model Y. Despite these challenges, speculation remains that while Tesla may consider operating its own robotaxi service, it could explore partnerships with established transportation network companies such as Uber Technologies.
Analysts did not dismiss the possibility of Tesla showcasing some of its innovative Optimus robots at the forthcoming event, despite expectations for a lower-cost vehicle being subdued. In an interesting turn of events, Tesla shares increased by 7.3% in afternoon trading, reflecting investor confidence amidst the uncertainties.
Similarly, Uber Technologies shares rose 3%, fueled by their newly signed partnership with Darden Restaurants, which promises a multi-year commitment for delivery services. The current share price of Tesla stands at $243.34, representing a change of +16.14, translating to a percentage change of +7.10..