Tesla Motors Inc got back into the good books of Wall Street when it announced that it was releasing new autopilot features last week. The release of update 7.0 worked to deflect attention away from the fact that Tesla is still miles behind delivering the new Model X to buyers after more than two years of delays. However, one analyst thinks that Tesla is a great buy because autopilot will trigger an increase in demand.
Many tech lovers are awed with the release of the new autopilot features for the Model S. Tesla lovers see it as more reason to compare Elon Musk to Tony Stark, some folks are thanking him for creating the future, but some are still largely unimpressed.
Many folks on Wall Street think that Tesla is not a serious carmaker – the fact that only 6 units of the Model X was delivered to Musk’s buddies is a cause of concern. Hence, the share price dropped more than 8% from Oct 1 to Oct 9 on weak Model X deliveries.
Chowdhry Says Tesla Motors is Awesome
The news about autopilot 7.0 helped Musk to get Tesla back into the good books of Wall Street. For one, the tech space was abuzz about how the firm is setting the pace for rivals. Reviews, videos, and coverage on the new features shows that Tesla is indeed a cool tech firm even if it is not quite the best carmaker. The stock has gained 2.86% in the last five days, it closed with gains of 2.58% last Friday, and it has gained 0.40% in pre-market trading this morning.
One of Tesla’s long-time vocal bulls is back with stronger bullish arguments in support of a buy position in Tesla. Trip Chowdhry at Global Equities Research in a new research note says that the new autopilot features will accelerate the demand for both the Model X and the Model S.
Chowdhry says two Model S owners, “demo’ed Auto-Pilot to more than 40 of their colleagues at work, spending almost 4 to 5 hours today… “Amazing” was the universal comment… Auto-steer and Auto Lane departure worked flawlessly… Parallel parking is perfect”.
Europe and Asia won’t get autopilot soon
Elon Musk on Sunday night hinted that the Tesla owners in Europe and Asia won’t be getting the autopilot features in their cars soon. In a tweet posted last night, Tesla CEO, Elon Musk said, “Autopilot release to Europe and Asia pending regulatory approval. Hopefully get the ok in the next few weeks”.
The new tweet about getting autopilot to users globally contrasts sharply with Elon Musk’s tweet from Oct 11 that “Some exciting news this week: Tesla Version 7 software with Autopilot goes to wide release on Thursday!”