01:48 PM EDT, 10/08/2024 (MT Newswires) -- Tesla's (TSLA) upcoming Robotaxi event is unlikely to be a positive catalyst for the company's share price as it's expected to be less about new vehicle models and more about artificial intelligence, Truist Securities said Tuesday.

The event, dubbed "We, Robot," is scheduled for Thursday. The electric vehicle maker previously postponed the event by a couple of months to allow it to "improve the robotaxi, as well as (add) a couple of other things for the product unveil," Chief Executive Elon Musk said on a conference call in July.

The event is expected to feature a prototype of the robotaxi vehicle, scheduled for a 2026 rollout, Truist said in a Tuesday note to clients. The vehicle is likely to be made using a manufacturing network rather than a production line and is expected to feature new technologies that drive costs lower, Truist analyst William Stein said.

A less expensive powertrain will likely include a drive unit that eliminates all rare-earth elements and 75% of the silicon carbide power switch content of Tesla's current traction inverter. This could serve as a negative catalyst for silicon carbide linked suppliers such as STMicroelectronics ( STM ) and ON Semiconductor (ON), according to the note.

A smaller size, new tech and a new manufacturing architecture "are in service of a much lower price point, enabling (Tesla) to address a much larger (total addressable market) than the current (Tesla) lineup does," Stein wrote. The Robotaxi is also expected to feature improved AI hardware and software, according to the brokerage.

By late next year, Tesla intends to release a vehicle that will include most of the Robotaxi technology, but that's manufactured on a production line instead of using its "unboxed" architecture, Stein said. "If (Tesla) were to show such a vehicle (Thursday), it could be a positive catalyst for the stock; however, we think it's rather unlikely."

Truist left its hold rating and the $236 price target on the Tesla stock unchanged.

On Wednesday, the company reported third-quarter deliveries that missed Wall Street's whisper numbers.

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