How Tesla's beaten-down stock could benefit from the 'golden age' of robotaxis
Tesla’s rollout of its robotaxi will usher in a “golden age of autonomous” and could send the EV maker’s beaten-down soaring by 40%, WedBush analyst Dan Ives predicted Friday. “We believe the golden age of autonomous is now on the doorstep for Tesla with the Austin launch next month kicking off this key next chapter of growth for Musk & Co.
and we are raising our price target from $350 to $500 reflecting this massive stage of valuation creation ahead,” Ives wrote in a note.He estimated that autonomous driving is a $1 trillion opportunity for Tesla and could push the EV maker’s market cap to $2 trillion by the end of 2026.Uber and Waymo will also benefit largely from autonomous driving opportunities, Ives added.Backlash over Musk’s role as DOGE cost-cutter have weighed on Tesla stock, with shares down about 10% far this year.The President Trump-backing mogul announced he is stepping back from his White House involvement this week and committed to leading the company for five more years.Musk earlier this week confirmed that Tesla plans to have autonomous robotaxis driving on the streets of Austin, Texas, by the end of June, with future plans for rollouts in Los Angeles and San Francisco.If the launch goes smoothly, Tesla will rapidly expand the number of robotaxis in service in Austin, the world’s richest person said.It’s a long time coming, as Musk has been telling Tesla investors that self-driving taxis are just a year away since 2016.While Tesla currently sells vehicles with self-driving capabilities, they require human supervision.
The robotaxi would mark the automaker’s first fully autonomous car. Ives said his optimism on Tesla is also linked to Musk’s reduced role in the White House.Most recently, the billionaire tech founder said he will drop in on the White House “for a couple days every few weeks,” a major pullback from his current proximity to the president.His role in the government agency “created brand damage and a...