Reuters
Tesla's plan to build a humanoid robot is an "absolute head scratcher" that comes at a time when the EV company needs to focus on addressing more pressing issues like securing China demand, safety, and the chip shortage, Wedbush's Dan Ives said.
The EV giant announced its plan to build a robot—called the "Tesla Bot"— during Thursday evening's hotly anticipated AI Day. The robot will perform repetitive, often "boring" tasks and drive labor costs down over time, Tesla said.
However, Dan Ives said in a Friday note the robot will "agitate investors" and has nothing to do with the company's near-term focus.
"While we appreciate Musk's longer term technology vision, a Tesla Bot is not what investors want to see with instead much more focus on chips, FSD, and re accelerating China EV demand in this key market at a critical juncture," said the senior analyst and longtime Tesla bull.
Earlier this week, the US regulator for auto safety opened an investigation into Tesla's autopilot system following a number of collisions. The announcement sent Tesla's stock price down nearly 5%, but the company has since pared back losses.
The probe could may take several years to resolve, according to Goldman Sachs. But Wall Street hasn't moved price targets yet. On Monday, Goldman reiterated it's $875 price target for Tesla. Dan Ives maintained his $1000 price target for Tesla, one of the Street's highest.
But Ives cautioned: "The safety issues on self driving remain a concern for investors that has gained steam over the past week representing another overhang for the stock."
Shares of Tesla were up roughly 1.9% after the opening bell on Friday.
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