Tesla (NASDAQ: TSLA) recently engaged in a detailed discussion with Wall Street firm Piper Sandler, as the firm published a new report on Friday following their meeting with the company’s Investor Relations team.
In the note from Piper Sandler, Tesla delved into various topics including the Semi program, Optimus, valuation potential, the launch of Robotaxi in Austin, and the progress of Full Self-Driving in the United States.
Tesla Semi Ramp
The highly anticipated Tesla Semi is slated to commence mass production in 2026 at a dedicated factory near the Gigafactory in Reno, Nevada. Having undergone pilot program testing with partnerships with companies like Frito-Lay and PepsiCo., the Semi has received rave reviews from drivers. This has provided Tesla with valuable insights as it prepares to expand its reach to more companies in the near future. Piper Sandler noted that Tesla is gearing up for a significant ramp-up in production, although expectations remain cautious.
Tesla Optimus and Its Value Internally and Externally
Optimus, a key player in Tesla factories, is expected to take on more significant roles within the company’s facilities by next year. Externally, Optimus could serve as a cost-effective solution for companies looking to streamline tedious tasks and manual labor. Piper Sandler believes that if Optimus can operate 18-hour shifts, a $100,000 price tag per unit would be justified.
Tesla Robotaxi Expansion
A major point of focus for Piper Sandler was Tesla’s recent expansion of the geofence for Robotaxi services in Austin. This expansion significantly increased the service area to approximately 170 square miles, surpassing the coverage offered by rival Waymo. Tesla has steadily doubled its geofence size since the launch in late June and revealed a 50% increase in its fleet of vehicles operating in Austin.
Tesla Full Self-Driving v14 Launch
Tesla’s upcoming Full Self-Driving suite, v14, is set for release in September or October with high expectations. CEO Elon Musk has hinted at significant improvements, including a 10X higher parameter count and other enhancements. There is speculation that v14 could mirror the software used in Austin for Robotaxi services. The firm anticipates that Tesla owners will have access to software comparable to Robotaxis in Austin.
Despite potential regulatory hurdles, Tesla aims to demonstrate the safety and efficacy of its Full Self-Driving technology. Piper Sandler reiterated its ‘Overweight’ rating and maintained a $400 price target for Tesla stock.
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