Tesla(US:TSLA)2025-06-24 15:30Summary of Tesla, Inc. Research Call Company Overview - Company: Tesla, Inc. (TSLA) - Industry: U.S. Autos & Mobility - Current Price: USD 322.16 (as of June 20, 2025) - Price Target: USD 275.00 - Rating: Equal Weight - Industry View: Negative - Potential Upside/Downside: -14.6% [8][50] Key Points from the Call Robotaxi Launch - Launch Details: Tesla's Robotaxi was launched in Austin, Texas, described as largely uneventful with no major issues [2][3] - Service Area: The service operates in a geofenced area of approximately 30 square miles, slightly smaller than Waymo's coverage [9] - Operational Hours: Service is available from 6 AM to 12 AM CT [9] - Pricing: Introductory flat rate fee of $4.20 per ride [9] Market Perspective - Investor Sentiment: Bulls view the launch as the beginning of a new era for Tesla, emphasizing the importance of revenue generation from driverless rides [4][5] - Caution Against Overoptimism: Analysts caution that while the launch is significant, the real challenge lies in scaling the operation to match competitors like Waymo and Uber [5][10] Scaling and Expansion - Scaling Path: The critical question is how quickly Tesla can scale its Robotaxi fleet, with plans to reach 1,000 active Robotaxis in a few months [10][11] - Geographical Expansion: Tesla aims to expand beyond Austin to cities like San Francisco, Los Angeles, and San Antonio [10] Technical and Regulatory Considerations - Technology Validation: The Robotaxi must perform well in its initial launch to validate the autonomous vehicle (AV) opportunity [13] - Regulatory Challenges: Approval for expansion into new cities and for a purpose-built Cybercab will be significant hurdles [13][14] - Competition with Waymo: Waymo has a substantial lead with over 50 million driverless miles and 10 million paid rides, making it a formidable competitor [14] Future Outlook - Focus on Scaling: The emphasis will be on the pace of scaling and expansion, with expectations for updates on progress and milestones [11] - Risks: Potential risks include demand weakening, regulatory actions, and increasing competition from both legacy OEMs and new entrants [58] Additional Insights - Consumer Feedback: Initial feedback from users indicates a smooth experience, although some minor issues were reported [12] - Technological Approach: Tesla's camera-only approach to autonomy differs from competitors that utilize radar and LiDAR, which may impact performance and regulatory acceptance [13] This summary encapsulates the critical insights from the Tesla, Inc. research call, highlighting the company's current position, market sentiment, and future challenges in the autonomous vehicle sector.