To The Moon

Tesla will hold its official "We, Robot" Robotaxi demonstration event at 7:00 PM local time on Thursday, October 10 (10:00 AM Beijing time on the 11th).

Optimistic expectations surrounding the launch of the autonomous Robotaxi have driven Tesla's stock up by more than 43% over the past four months. Ahead of this major event, investors should keep an eye on ETFs with significant holdings in this luxury electric vehicle manufacturer, including ARK Innovation ETF (ARKK), Consumer Discretionary Select Sector SPDR Fund (XLY), Simplify Volt Robocar Disruption and Tech ETF (VCAR), ARK Autonomous Technology & Robotics ETF (ARKQ), and Fidelity MSCI Consumer Discretionary Index ETF (FDIS).

Elon Musk has been talking about developing a Robotaxi network since at least April 2019, when he mentioned a fleet of autonomous Teslas. The next major update came in 2020 when the CEO stated that Robotaxis would be launched by 2023 and enter production by 2024, though this has not yet materialized.

On Thursday, after another delay, Tesla seems ready for what Musk has referred to as the "product launch" of the Robotaxi. Whether this will be as successful as the 2012 Model X launch or as disappointing as the 2021 debut of Tesla's Optimus robot remains to be seen by those without insider knowledge.

This event will undoubtedly attract significant investor attention and could either lead to a major win for Tesla or a substantial letdown. Here are analysts' perspectives:

Analysts' Views

Tom Narayan, an analyst at RBC Capital Markets, raised Tesla's price target by $12 to $236 per share, noting that the event will "showcase a business expected to generate $153 billion in revenue for Tesla," representing 63% of his current valuation. He forecasts that the global Robotaxi market could generate $1.7 trillion in revenue by 2040.

Analysts at Deutsche Bank gave Tesla a "Buy" rating with a price target of $295, expressing optimism about the event while also acknowledging that overly high expectations could lead to a "sell the news" scenario after the event.

Jim Cramer, a well-known financial commentator, called the event "hugely significant," stating that "Robotaxis will succeed in many cities, and Tesla will be cheaper than Uber."

Cathie Wood, CEO of ARK Invest, is even more bullish, predicting that this market could present Tesla with a trillion-dollar revenue opportunity over the next five years.

However, some analysts are skeptical, suggesting Tesla's Robotaxi plans may not live up to the hype. Each Robotaxi is expected to cost between $150,000 and $200,000, with some estimates suggesting Tesla may need around $35 billion to develop a global fleet.

ETFs to Watch

ARK Innovation ETF (ARKK)

ARK Innovation ETF is actively managed and invests in companies benefiting from the development of new products, technological advancements, and breakthroughs in scientific research. The fund holds 34 stocks, with Tesla holding the top spot at 14.8%.

Consumer Discretionary Select Sector SPDR Fund (XLY)

XLY offers broad exposure to the consumer discretionary sector by tracking the Consumer Discretionary Select Sector Index. It holds 50 stocks, with Tesla in second place at 13.9%.

Simplify Volt Robocar Disruption and Tech ETF (VCAR)

VCAR is an actively managed ETF focused on companies leading the autonomous driving sector.

ARK Autonomous Technology & Robotics ETF (ARKQ)

ARKQ focuses on companies involved in automation, manufacturing, energy, and related industries, with Tesla holding a 13.6% weight.

$ARK Innovation ETF(ARKK)$ $消费品指数ETF-SPDR可选消费品(XLY)$ $Simplify Volt RoboCar Disruption and Tech ETF(VCAR)$ $ARK Autonomous Technology & Robotics ETF(ARKQ)$ $Fidelity MSCI Consumer Discretionary Index ETF(FDIS)$ $特斯拉(TSLA)$ $标普500ETF(SPY)$