Investor Gary Black, managing director of Future Fund LLC, predicts that Tesla Inc. CEO Elon Musk will not address key questions related to the Robotaxi during the company’s third-quarter earnings call. Black expressed his concerns on social media platform X, stating that investors were “bulled up” on Tesla ahead of the annual shareholder meeting and the earnings call. However, he remains uncertain about Musk’s response to the important question of when the safety monitor will be removed from robotaxis to achieve truly unsupervised autonomy.
Robotaxi Safety Operators
The investor emphasized that until Tesla removes safety operators from the Robotaxis, the technology will be considered supervised autonomy and should not be valued at a high price-to-earnings ratio. Black also noted that the questions selected for the earnings call were “actually very good,” but the earnings report may not be a catalyst for the stock.
Tesla’s Earnings Call Questions
Meanwhile, the company’s Robotaxi in Austin operates on the highway with an on-board safety operator moved to the driver’s seat, potentially in response to revised self-driving regulations in Texas. Black believes that the questions answered during the earnings call can provide a good view of the road ahead, but the earnings report may not have a significant impact on the stock.
NHTSA FSD Investigation and Tesla Cybercab
The earnings call comes as the National Highway Traffic Safety Administration (NHTSA) investigates Tesla’s Full Self-Driving (FSD) technology over traffic violations and accidents. However, some investors, such as Gene Munster of Deepwater Asset Management, believe that the probe could ultimately be beneficial for the company. Additionally, Tesla’s highly anticipated Cybercab was recently spotted at the Gigafactory in Texas and the Fremont, California facility, undergoing testing.
Tesla’s FSD Lawsuits
Tesla faces multiple lawsuits over the FSD system, including a class-action lawsuit in California and a lawsuit by owners in China, alleging that the company failed to deliver the autonomous driving capabilities owners paid for. The company’s scores on Momentum, Quality, and Growth metrics are strong, but its Value metric is poor. Tesla’s price trend is favorable in the Short, Medium, and Long term.
Conclusion
As Tesla prepares for its third-quarter earnings call, investors are eagerly awaiting answers to key questions about the Robotaxi and FSD technology. With the NHTSA investigation and lawsuits looming, the company’s future is uncertain. Investors can stay up-to-date on the latest developments and insights by signing up for stock rankings and following mobility coverage.