Tesla’s rollout of its robotaxi will usher in a “golden age of autonomous” and will ship the EV maker’s beaten-down inventory hovering 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 observe.
He estimated that autonomous driving is a $1 trillion alternative for Tesla and will push the EV maker’s market cap to $2 trillion by the top of 2026.
Uber and Waymo may also profit largely from autonomous driving alternatives, Ives added.
Backlash over Musk’s position as DOGE cost-cutter have weighed on Tesla inventory, with shares down about 10% this yr. The inventory ticked up 0.5% on Friday as of two p.m. ET.
The President Trump-backing mogul introduced he’s stepping again from his White Home involvement this week and dedicated to main the corporate for 5 extra years.
Musk earlier this week confirmed that Tesla plans to have autonomous robotaxis driving on the streets of Austin, Texas, by the top of June, with future plans for rollouts in Los Angeles and San Francisco.
If the launch goes easily, Tesla will quickly increase the variety of robotaxis in service in Austin, the world’s richest particular person stated.
It’s a very long time coming, as Musk has been telling Tesla traders that self-driving taxis are only a yr away since 2016.
Whereas Tesla at the moment sells autos with self-driving capabilities, they require human supervision. The robotaxi would mark the automaker’s first totally autonomous automobile.
Ives stated his optimism on Tesla can be linked to Musk’s lowered position within the White Home.
Most just lately, the billionaire tech founder stated he’ll drop in on the White Home “for a couple days every few weeks,” a serious pullback from his present proximity to the president.
His position within the authorities company “created brand damage and a black cloud” over Tesla, Ives stated.
Protests have damaged out at Tesla dealerships throughout the nation as demonstrators decry his intense authorities cuts, like slashing federal jobs and spending on the Division of Schooling, US Company for Worldwide Growth and Nationwide Institutes of Well being.
There have been arson assaults at Tesla showrooms, with Molotov cocktails tossed at vehicles.
Traders have additionally grown pissed off with Musk’s involvement in DOGE, viewing it as a time-suck away from his consideration on Tesla. Musk additionally owns a number of different firms, together with The Boring Firm, SpaceX and social media platform X.
Whereas the robotaxi launch is promising, Tesla nonetheless faces a number of challenges, together with a stoop in abroad gross sales.
Chinese language rival BYD bought extra electrical autos in Europe than Tesla for the primary time ever final month.
Tesla reported one more month-to-month drop in Europe gross sales, with volumes plunging 49% in April from the yr earlier than, in line with a report from JATO Dynamics.
