JP Morgan: Robotaxi is unlikely to generate substantial revenue in the next few years, Tesla falls by 3.5%

Although Tesla CEO Musk previously stated that Tesla will launch a self-driving Robotaxi and possibly a corresponding application on August 8th, analysts at Morgan Stanley said on Tuesday that the Robotaxi may disappoint investors, stating that this business is unlikely to generate substantial revenue in the "next few years."

In a report to clients, Morgan Stanley analysts indicated that Tesla's Investor Relations Director may have hinted at this during a recent meeting with the bank. The director suggested during the meeting that Tesla's dedicated Robotaxi will be based on the company's next-generation platform, and at other points in the meeting, it was mentioned that the platform will be introduced when Tesla is closer to fully utilizing its current installed capacity of about 3 million units.

After a significant price cut that did not boost sales, Musk has shifted Tesla's focus to Robotaxi. While Musk proposed the concept of a shared autonomous vehicle fleet at least eight years ago, the company has not yet established most of the necessary infrastructure or obtained regulatory approval to test autonomous vehicles on public roads.

Tesla stated that its next wave of growth will be led by a large number of low-cost models expected to be launched by 2025, which will utilize existing platforms and assembly lines rather than the previously planned next-generation platform. Analysts say this indicates that Tesla has limited potential for reducing commodity costs in the near term, but also implies significant capital savings.

Morgan Stanley has a "sell" rating on Tesla stock with a target price of $115. Tesla's US stock fell 3.5% at one point on Tuesday, trading at $167.89 during the session, with the stock down over 32% this year.