Elon Musk mentioned a while back that the real value of Tesla (TSLA) was in robotaxis. Investors and the market as a whole have patiently waited for advancements in the technology, and we’ll get our first true look into the company’s plans tonight as it unveils a physical prototype.

This was something we were expecting to see in the company’s most recent earnings day back in July. Shares fell 10% when the EV manufacturer announced delays for its autonomous vehicle reveal – coupled with less than impressive results for the second quarter.

That being said, TSLA has been making strides over the past month – up nearly 8% since September 10th. While the stock has been trending slightly lower this week, there’s definitely a good chance it could pop on tonight’s news.

Tesla will not only show off the work it has been doing on the robotaxi, but also break down its business concept for selling, licensing, and operating the technology at scale. We’re also looking for insights into when we can expect to see these EVs hit the streets.

The bar is high for Musk’s company, with some analysts assuming we’ll see groundbreaking AI technology. The self-driving vehicles are trained on AI, which is huge for proving the company is more than just an automaker – it’s an AI giant.

The field is fairly divided on what we can expect shares to do in the wake of tonight’s event. While some experts think it’s a good opportunity to “sell the news,” others appear to already have their minds made up that the event will be a letdown.

For example, CFRA analyst Garret Nelson says that Elon Musk has a track record for overpromising and under delivering, specifically on the timeline for company rollouts. 

Some of the sentiment may be a distaste for the founder himself, but there is some truth to it. Musk said back in 2016 that we can expect a Tesla to make its way across the country on its own within a year. That still has not come to fruition.

It remains to be seen how TSLA will move relative to tonight’s event. In the meantime, though, we do have 3 things you should take note of whether you’re a current TSLA investor or are waiting for an opportunity to trade this stock. Here’s what we found in the VectorVest system.

TSLA Has Very Poor Upside Potential With Good Safety and Fair Timing

VectorVest is a proprietary stock rating system that delivers clear, actionable insights in just 3 simple ratings, saving you time and stress while empowering you to win more trades. 

These are relative value (RV), relative safety (RS), and relative timing (RT). Each rating sits on its own scale of 0.00-2.00 with 1.00 being the average, allowing for quick and easy interpretation. 

It gets even better, though. You’re given a buy, sell, or hold recommendation based on the overall VST rating for any given stock at any given time. Here’s the situation for TSLA:

  • Very Poor Upside Potential: The RV rating compares a stock’s long-term price appreciation potential (based on a 3-year projection), AAA corporate bond rates, and risk. This makes it a far superior indicator than the typical comparison of price to value alone. TSLA has a very poor RV rating of 0.19 right now. The stock is overvalued with a current value of just $42.61/share.
  • Good Safety: The RS rating is a risk indicator computed from an analysis of the company’s financial consistency & predictability, debt-to-equity ratio, business longevity, sales volume, and price volatility. TSLA has a good RS rating of 1.23.
  • Fair Timing: The RT rating is based on the direction, dynamics, and magnitude of the stock’s price movement. It’s calculated day over day, week over week, quarter over quarter, and year over year. The RT rating of 1.05 for TSLA is fair.

The overall VST rating of 0.97 is just below the average but still considered fair. That being said, TSLA is rated a HOLD pending the outcome of tonight’s event. 

Take a closer look at this opportunity so you can fully capitalize when the time is right - get a free stock analysis at VectorVest today and set yourself up for smooth, successful investing!

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VectorVest advocates buying safe, undervalued stocks, rising in price. TSLA is in the spotlight heading into Thursday night’s robotaxi event, something investors and the world as a whole have been patiently waiting for. The stock itself has very poor upside potential with good safety and timing.

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