A Tesla bull, Morgan Stanley analyst Adam Jonas, is doubling down on his bullish stance on Tesla, highlighting the pivotal role of Elon Musk’s AI company xAI in shaping the electric vehicle giant’s future. Jonas believes that training and simulation are the cornerstones of Tesla’s success in robotics, autonomy, and manufacturing, and that xAI is a key catalyst in this journey.
Jonas emphasizes that AI execution is critical to Tesla’s upside potential, asserting that the company’s future valuation hinges heavily on its ability to develop, manufacture, and commercialize autonomous technologies, from transportation to humanoid robots. He argues that xAI was established to attract top AI talent who might not be drawn to Tesla directly, and the AI company’s massive investment in advanced computing resources, like the Colossus cluster in Memphis, offers significant benefits to Tesla.
Jonas points out the intense competition in the robotaxi market, citing Waymo’s recent surge in fleet size, city deployments, and technological partnerships. He warns investors that the race for dominance in autonomous vehicles is a battle for data, computing power, capital, and talent.
Jonas also takes a cautious approach to Tesla’s upcoming Robotaxi Day on October 10th, suggesting that investors should temper their expectations. He believes that Tesla will likely demonstrate the FSD v12.5 software and offer a ride in a first-generation Cybercab, but he doesn’t anticipate any groundbreaking announcements beyond that.
Looking ahead to the event, Jonas anticipates Tesla will focus on showcasing the safety of its autonomous vehicle technology and highlighting the rapid improvement in FSD performance. He believes investors will be interested in understanding the methodology behind Tesla’s approach and how its enabling technologies are driving advancements in autonomy.
Jonas concludes by stating that he does not expect Tesla to unveil any updates regarding its Optimus humanoid robot at the event.
