On October 10 in Los Angeles, Elon Musk will finally unveil Tesla’s (TSLA) highly anticipated robotaxi to the world.
The big reveal was supposed to happen earlier this year but was delayed until October. Now, we’re just days away from getting a closer look at the next phase of the future of transportation.
Investor expectations have waned a bit due to the delay – regarding what Musk will disclose about the company’s next business venture. That said, investors have become accustomed to Tesla’s big announcements. Anything less at this point could lead to more disappointment.
Now, I’m not saying next week’s robotaxi reveal will be a make-or-break moment for the company. If the announcement is underwhelming, the stock will likely fall.
But if the news is better than expected and Musk releases some eye-opening specifics about the future of robotaxis, I expect Tesla’s stock will breakout and continue the current bull market.
As you can see on the chart below, Tesla is up against a significant level near $265 per share.
Great news out of the robotaxi event could create a breakout opportunity. But disappointing news would likely lead to another failed breakout and a pullback to the low $200s.
But could there be an even bigger opportunity for Tesla in the future?
I’m talking bigger than the multitrillion-dollar robotaxi industry… and even bigger than taking over the humanoid industry with the Tesla Bot, Optimus.
Tesla’s next big technological innovation is electric vertical take-off and landing vehicles (eVTOLs).
eVTOLs – also known as flying cars – are similar to drones that can carry passengers. Think helicopters but a safer, cheaper, all-electric, and autonomous option.
According to investment bank Morgan Stanley, the drone and eVTOL market could be worth $1 trillion by 2040 – and an unbelievable $9 trillion by 2050.
Now, Tesla has yet to officially enter the eVTOL conversation. But it fits the mold of Musk’s other innovative ventures – from electric vehicles (EV) to space rockets and even the hypersonic underground travel.
The real question is, why wouldn’t Tesla take to the skies with flying cars?
I don’t believe Musk will mention eVTOLs during next week’s big reveal. But according to Morgan Stanley analyst Adam Jonas, Tesla could make its move soon.
Jonas has two reasons to believe this…
First, China is dominating in the manufacturing of eVTOLs. In fact, the country recently set two Guinness World Records for its display of drones. Musk responded to this news in a series of tweets on X (formerly Twitter).
Second, Jonas highlighted a comment from this year’s second-quarter earnings call where Musk said, “The world is headed for fully electrified transport, not just the cars but also aircraft and boats.”
It might be a stretch to use two brief eVTOL mentions to draw any major conclusions about Tesla entering the flying car market. But it makes complete sense. And I see no reason why the company wouldn’t move in that direction in the coming years.
I expect Tesla will have a successful robotaxi launch. If it can corner the humanoid market – which is a high priority – and become a major player in the eVTOL space, this company will be worth at least $5 trillion in the next five to 10 years.
That’s more than 6X growth from its current share price.
To be clear, I’m not saying you should run out and by Tesla today. But based on all these “breadcrumbs,” it sounds like this company could be a great core holding for the next decade.
Here’s to the future,
Matt McCallEditor, Market Insights
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