Gary Black Says Removal Of Safety Monitors Would Allow Tesla To Scale Robotaxis Up To 'Thousands' — Expects Strong Q3 Performance - Tesla (NASDAQ:TSLA)

Core Insights - Elon Musk's goal to remove onboard safety monitors from Tesla's Robotaxis by year-end is seen as a key catalyst for the company's stock performance amid regulatory changes [1][3] - Tesla's stock has surged following news of expected delivery figures surpassing analyst estimates for Q3, with expectations of continued strength before potential hedge fund sell-offs in Q4 [2][3] Group 1: Robotaxi Operations - The removal of safety monitors could enable Tesla to scale its Robotaxi fleet from 150 vehicles currently in Austin and San Francisco to potentially thousands [3] - Even with a fleet of 5,000 Robotaxis, the earnings impact in 2026 is projected to be minimal, estimated at 8-10 cents per share [4] Group 2: Market Predictions and Production - Dan Ives from Wedbush Securities predicts a $1 trillion opportunity for Tesla in autonomous driving and AI, emphasizing Musk's leadership during this competitive phase [4] - Tesla is increasing production at its Gigafactory near Berlin due to rising demand and positive sales across 37 markets, including Europe, the Middle East, and Taiwan [4] Group 3: Sales Performance and Challenges - Despite production increases, Tesla's European sales have reportedly declined by 40.2%, attributed to competition from BYD [5] - Concerns have been raised about the sustainability of sales momentum as the $7,500 Federal EV credit under the IRA is set to expire, which could lead to a downturn in sales [6] Group 4: Market Share and Product Strategy - Tesla has discontinued its most affordable Cybertruck trim, marking a decline in its market share to below 40% for the first time in eight years [7]