Posted 4/7/2024, 10:10:09 PM
Tesla Puts Affordable Model 2 on Back Burner to Prioritize Robotaxis, Though Payoff Seen as Distant
- Tesla may have scrapped plans for affordable Model 2 car to focus on robotaxis instead, though Musk denies report
- Model 2 seen as critical for Tesla's growth, expected to account for over 40% of incremental unit volume from FY24-FY30
- Scrapping Model 2 raises questions about competition in China, whether it would have been a "game changer"
- Unveiling of robotaxi not seen as big boost to bull case given legal/regulatory hurdles to autonomy over next decades
- Morgan Stanley analyst maintains Buy rating and $310 price target, sees 88% upside for TSLA stock
