TSLA Stock Outlook: Here’s What Friday’s Tesla AI Day Could Reveal

  • Tesla’s (TSLA) next big event is its second annual AI Day, happening on Sept. 30.
  • This showcase will unveil the latest on the various artificial intelligence-related projects the EV maker has in the works.
  • AI Day may not necessarily spark a short-term rally, but it could bolster the long-term bull case for TSLA stock.
TSLA Stock - TSLA Stock Outlook: Here’s What Friday’s Tesla AI Day Could Reveal

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The next big event for Tesla (NASDAQ:TSLA) stock is Sep. 30. The electric vehicle (or EV) maker will host its second annual AI day, a showcase of the company’s various artificial-intelligence (or AI) projects.

This is likely to include updates on Tesla’s efforts in the field of autonomous vehicle (or AV) technology. Also, the company is expected to unveil more about its plans to develop and manufacture humanoid robots. As you may recall, CEO Elon Musk teased the public about its humanoid robot endeavor at last year’s AI day.

Last year’s AI day only elicited a mildly positive reaction among analysts and investors. The same could occur following tomorrow’s presentation, especially as current conditions have investors less in the mood to “buy the rumor, buy more on the news.”

Still, I would view this event as a positive for the stock. Here’s why.

TSLA Tesla $274.58

TSLA Stock and AI Day 2022

Tesla may be using its humanoid robot as the focal point of tomorrow’s A.I. day, as InvestorPlace’s Samuel O’Brient reported earlier this week, but it may be the EV maker’s updates on its AV project that will be of most interest among investors.

Namely, the latest on Tesla’s “Full Self Driving,” or FSD, software. At present, the name of this feature is a misnomer, as it’s more of an advanced driver assist system (or ADAS). However, as upgrades bring it closer to true autonomous driving, Tesla will be able to keep raising the price of this package.

Just recently, the company raised the price of FSD from $12,000 to $15,000. Musk has previously said that the package will be worth $100,000 once it reaches full autonomy. Along with the latest on FSD, TSLA investors are also interested in the latest on the company’s even bolder AV-related project: its plans to build a fleet of robotaxis.

As Barron’s reported Sept. 29, Wedbush analyst Dan Ives views robotaxis as an important catalyst for Tesla in the coming years. After numerous delays, Tesla could pleasantly surprise, with news of progress that is ahead of the market’s dialed-back expectations.

The Potential Takeaway from AI Day

Keep in mind that AI Day isn’t a supplemental  “investor day” for TSLA stock. Designed mainly to attract engineering talent, AI Day will likely be long on technology and short on how Tesla can/will monetize this technology down the road.

The company-focused nature of this event explains why it failed to move the needle for shares last year and isn’t likely to do so this year. Something like next month’s quarterly earnings releases will have a greater immediate impact on the performance of Tesla shares.

So, what’s the takeaway from AI Day when it comes to TSLA stock? We know full well near-term prospects remain extremely bright for Tesla. As I argued earlier this month, the rapid pace of EV adoption both in the U.S. and in China could keep demand for Tesla’s vehicles strong, even if there’s a recession next year.

There’s a lot pointing to results in the upcoming quarters meeting/beating expectations. However, it’s inevitable Tesla’s current main business will mature. The company needs new markets to conquer in order to stay in high growth mode. Further monetization of its self-driving technology and a move into areas like robotaxis and robots would do just that.

Bottom Line on TSLA Stock

While Tesla shares have moved higher in recent days, this may be more a result of the market recovering from last week’s selloff rather than the product of investor excitement about AI Day.

But even as it fails to generate much excitement, it’s still an important event. At tomorrow’s AI day, Tesla could demonstrate that it’s made material progress towards making fully autonomous vehicles a reality. From the event, the company may also be able to boost confidence that its plans to build robotaxis and humanoid robots are more than mere pipedreams.

In short, while I wouldn’t count on it sparking a short-term rally, AI Day on Sep 30 could help to bolster the long-term bull case for TSLA stock. If Tesla is making real progress with its artificial intelligence projects, ample runway lies ahead for shares.

TSLA stock earns an A rating in my Portfolio Grader.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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Article printed from InvestorPlace Media, https://investorplace.com/market360/2022/09/tsla-stock-ai-day-will-reveal-even-more-long-term-potential/.

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