Summary
- CFRA Research analyst Garrett Nelson believes Tesla stock is trading at a fraction of its market potential
- Nelson is optimistic about regulatory approvals related to autonomous driving in the United States
- Morgan Stanley analysts also forecast a bull case scenario of $800 for Tesla based on its robotaxi business potential
- Tesla plans to launch unsupervised self-driving robotaxi services in Austin by June 2025
- Analyst Gary Black predicts that less than 50% of Tesla owners will join the robotaxi fleet, as some may be against including personal vehicles in a publicly-used fleet.
Article
CFRA Research analyst Garrett Nelson believes that Tesla stock is currently undervalued and has the potential for significant growth, particularly due to the company’s robotaxi business. Nelson is optimistic about regulatory approvals related to autonomous driving in the United States and the overall global market opportunity, estimating it to be over $5 trillion. He sees Tesla as still trading at a fraction of this potential and recommends buying the stock despite recent dips.
Morgan Stanley analysts also agree with Nelson’s assessment and have forecasted an $800 bull case scenario for Tesla based on the success of its robotaxi business. Tesla is aiming to launch robotaxi services with unsupervised self-driving capabilities in Austin by June 2025, with plans to expand to multiple cities in the U.S. by the end of the year. The potential of the robotaxi fleet is seen as a key driver of Tesla’s future growth and success in the market.
However, there are conflicting views among Tesla analysts regarding the impact of the robotaxi fleet on the company’s business. Gary Black predicts that fewer than 50% of Tesla owners will be willing to join the fleet, as many may be opposed to including their personal vehicles in a publicly-used service. This differing opinion highlights the uncertainty surrounding the success of Tesla’s robotaxi business and its potential impact on the company’s overall performance.
Despite the debates among analysts, Tesla continues to make progress in its autonomous driving technology and is moving forward with its plans to launch robotaxi services. Elon Musk has been vocal about the company’s vision for the future of transportation and remains confident in the success of the robotaxi business. Tesla’s ongoing development efforts and strategic initiatives demonstrate its commitment to innovation and growth in the market.
Investors and analysts alike are closely monitoring Tesla’s progress in the autonomous driving space and the rollout of its robotaxi services. The company’s stock performance and market potential are key areas of focus for those following Tesla’s trajectory in the coming years. As Tesla continues to disrupt the automotive industry with its innovative technologies and business models, the debate over the impact of the robotaxi fleet on its future success will likely continue among industry experts and stakeholders.
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