Tesla Analysts Rave About Cybercab's Design and Cost Advantages, But Production Schedule Raises Concern: 'Too Far Out for Skeptical Investors to Join' – Tesla (NASDAQ:TSLA)

Tesla, Inc. TSLA The “Us, Robots” event is now in the rearview mirror and some bullish analysts commented on the event and its impact on the company and the stock for the first time.

Impressive event: The design of the new Cybercab, Tesla's fully autonomous vehicle, is very impressive up close and lays the foundation for one of the future growth drivers for Tesla, Wedbush analyst said Daniel Ives in a note. The analyst noted that CEO Elon Musk provided some details on the production schedule, hinting at a start date of at least sometime in 2026 or 2027.

The Cybercab features butterfly doors, no steering wheel or pedals, and is available for sale to customers for under $30,000. Operating costs are 20 cents per mile and, including taxes, 30 to 40 cents, Ives said.

It will also allow inductive or wireless charging, with the vehicle running via an inductive charger and refilling its battery from the ground, he said.

The vehicle “lays the foundation for one of the future growth drivers for Tesla, as we believe Cybercab could represent a major opportunity to increase Tesla's overall earnings and margins over the next few years as it gains traction,” the analyst said.

Tesla also provided updates on unattended, fully autonomous driving, which is expected to launch in Texas and California in 2025 and will be expanded based on state regulatory parameters, Ives said. The unattended FSD will initially be used in the Model 3/Y to familiarize users with the technology before the Cybercab comes to market, he said.

The new Robovan, which can accommodate up to 20 people, has been launched, Ives said, adding that the vehicle could be a mode of transportation that Tesla will use in the coming years.

The Optimus robot also made an appearance and served drinks to guests. The price is likely to be between $20,000 and $30,000, the analyst said. He expects commercialization in the next two years.

Price points at Cybercab will create a fleet segment that could be a $10 billion annual business for Tesla at scale in the coming years, Ives said. The launch event provided a glimpse into the future of this breakthrough technology, with Optimus potentially being much closer to the reality Wedbush thought at the start of the event, he said.

Ives said he came away from this event feeling very positive about the Cybercab and the autonomous journey at Tesla. “Regulatory approval, insurance and the details of this Cybercab rollout will continue to be a debate on the road and present some timing challenges that Tesla will need to overcome to meet this next step in growth/the future of transportation,” he said.

Ives has an outperform rating and a $300 price target on Tesla shares.

See also: How to buy Tesla (TSLA) shares

Cost advantage: Deepwater Asset Management Gene Munster highlighted the cost advantage that a cybercab would offer when posting his comments on X following the event. Musk promoted the vehicle as “individualized mass transit,” and the 20 cents per mile that Cybercab costs is equivalent to about $1 for an average car today, the technology venture capitalist said.

“My first opinion on Cybercabs is that I think people will like the look,” he added.

Munster said the Cybercab's timeline was a disappointment, with Musk's comments pointing to an SOP in 2027. “That is still too far away for skeptical investors to commit to investing in $TSLA,” he said.

The Robovan was a surprise to most, and since the company didn't give a timeline, Munster expects it to arrive by 2028 at best.

The tech analyst understood Musk's statement that the Optimus will be priced at $25,000 to $30,000 “in the long term,” saying, “That's a formulation I haven't heard from Elon that much on timing, so would.” I say it will reach that price in 2030.”

According to Benzinga Pro, Tesla ended Wednesday's session down 0.95% at $238.77. The stock has fallen about 3.91% since the beginning of the year.

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Photo courtesy: Tesla