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Key Stats for Tesla Stock
- Price Change for Tesla stock: 2%
- Current Share Price: $327
- 52-Week High: $488
- TSLA Stock Price Target: $301
What Happened?
Tesla (TSLA) stock gained 2% following the debut of its long-awaited robotaxi service in Austin, Texas.
The launch marked a key milestone for CEO Elon Musk’s vision to transform Tesla from an electric vehicle manufacturer into an autonomous transportation company. However, the initial rollout was deliberately limited in scope.
The first robotaxi trips were initially restricted to a narrow portion of Austin, with Tesla employees serving as safety monitors in the passenger seats while leaving the driver seats empty.
Tesla hand-selected friendly riders, including investors and social media influencers who live-streamed their experiences, generating largely positive word-of-mouth coverage.
See Tesla’s full analyst estimates, earnings results, and earnings transcript (It’s free) >>>
The debut was uncharacteristically low-key for Tesla, which typically stages elaborate events for major announcements.
Instead, the company relied on social media buzz and media coverage, with Musk announcing on X that the service would charge a flat $4.20 fee per trip within the geofenced operating area.
The service operates from 6:00 AM to midnight daily, avoiding challenging intersections and excluding passengers under 18 years old.
Tesla has indicated service may be limited during adverse weather conditions, reflecting a cautious approach to safety as it faces ongoing regulatory scrutiny from the National Highway Traffic Safety Administration.
Based on analyst estimates, Tesla appears slightly overvalued with a projected 1.6% downside over the next 2.5 years. However, the stock could still be undervalued if the company exceeds expectations in AI, robotics, or energy, because these areas may not be fully reflected in today’s assumptions.
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What the Market Is Telling Us About TSLA Stock
The 2% TSLA stock gain reflects cautious optimism about Tesla’s entry into the autonomous ride-hailing market, though investors remain divided on the technology’s commercial viability.
RBC Capital Markets analyst Tom Narayan noted that robotaxis represent about 60% of his valuation for Tesla shares, highlighting the critical importance of this business line to the investment thesis.
Tesla’s camera-only approach to autonomous driving, which eschews the expensive lidar and radar systems used by competitors like Waymo and Zoox, represents both a potential cost advantage and a technical risk.
While this strategy could enable faster scaling and lower prices if successful, critics question whether camera-only systems can achieve the reliability necessary for widespread deployment.
The launch comes as Tesla attempts to reorient itself around emerging technologies following a sales slump and consumer backlash against Musk’s political activism.
TSLA stock has recovered about 50% from its April lows. Still, it remains down 20% year-to-date, reflecting investor uncertainty about Tesla’s transition from a pure-play electric vehicle (EV) manufacturer to a diversified technology company.
Tesla faces significant competition in Austin, where Waymo is expanding through an Uber partnership and Amazon’s Zoox is conducting tests.
However, Wedbush analyst Dan Ives, who rates Tesla “outperform,” expects the service to be competitive with Waymo from the start, citing positive feedback from early riders.
The regulatory environment remains a key overhang, with Texas recently requiring state permits for autonomous vehicle operations and Democratic lawmakers urging Tesla to delay its launch until new safety rules take effect in September.
Tesla’s history of ambitious timelines and Musk’s previous unfulfilled promises for self-driving capabilities add additional skepticism.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
