A robotaxi isn't enough to fix Tesla's problems, analyst says. Here's what Elon Musk needs to do.

• Wedbush analysts said Tesla pushing off a cheaper EV in favor of robotaxis would be "a debacle."

• Reuters reported Tesla halted the development of its affordable EV to focus on a robotaxi.

• Wedbush believes full autonomy won't be reached until 2030, making an affordable Tesla "crucial."

The robotaxi that Tesla CEO Elon Musk teased would be revealed by the end of the year is not what the company needs to focus on in the short-term, according to one prominent analyst firm.

Instead, it is "crucial" that Tesla delivers a sub-$30,000 car in the next 18 months, Wedbush analysts wrote in a note published Thursday.

The analysts said while an upcoming Tesla robotaxi reveal is an exciting announcement, full autonomy isn't expected until 2030.

"If robotaxis is viewed as the 'magic model' to replace Model 2 we would view this as a debacle negative for the Tesla story," the analyst note said. "It would be a risky gamble if Tesla moved away from the Model 2 and went straight to robotaxis."

The Wedbush letter comes after Reuters reported on April 5 that Tesla was holding off on developing the $25,000 electric vehicle to put more resources toward self-driving cars. The report cited internal company messages and sources familiar with the situation.

Musk responded to the report, saying "Reuters is lying (again)" in a post on X, formerly Twitter.

Later on April 5, Musk posted on X that Tesla will unveil its robotaxi on August 8.

The possible reveal date comes after years of Musk discussing how Tesla's self-driving software, which currently requires an attentive driver at all times, could eventually make its cars more valuable if owners could generate money by providing fully autonomous rides for others when not personally using their vehicles.

Musk has long focused on self-driving cars

Musk said in a 2022 interview that Tesla's "overwhelming focus" is solving fully autonomous driving.

"It's really the difference between Tesla being worth a lot of money or worth basically zero," Musk said in the interview.

The Tesla CEO has said new cars quickly lose value and car companies make money on selling existing fleets.

Tesla's Full Self-Driving software beta, or FSD, is currently classified as "level two" in an industry standard that goes up to six. The software still requires full human supervision. Numerous crashes involving Teslas have led to scrutiny from safety regulators and lawsuits.