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Tesla stock gains ahead of robotaxi launch: analyst sees 50% upside ahead

by admin June 20, 2025
June 20, 2025

Tesla shares are gaining ground as investor excitement builds ahead of the company’s long-anticipated robotaxi launch.

CEO Elon Musk has pledged a major reveal next week, fuelling optimism about Tesla’s potential to disrupt the ride-hailing and autonomous driving sectors.

Musk recently confirmed that the robotaxi service is set to begin operations in Austin, Texas, on June 22.

However, a group of Texas lawmakers is calling for a delay, citing safety concerns and urging the company to allow more time for adequate preparation.

The launch is widely viewed as a pivotal moment in Tesla’s evolution, from an electric vehicle manufacturer to a broader AI-driven mobility platform.

Analysts see the robotaxi initiative as a gateway to new multi-billion-dollar revenue opportunities that could reshape Tesla’s long-term growth trajectory.

The initial rollout will be limited in scope, relying on a small fleet of standard Model Y vehicles with human teleoperators available if needed.

Operations will be restricted to designated areas, though that has done little to quell regulatory and public safety concerns.

Dan Ives remains extremely bullish on Tesla

Wedbush analyst Dan Ives remains firmly bullish on Tesla, calling it “the most undervalued AI play in the market today.”

In a note published Friday, Ives reiterated his outperform rating and maintained a $500 price target on the stock, implying an upside of more than 55% from Wednesday’s close at $322.05.

Despite a decline of over 20% year-to-date, Ives sees Tesla at the beginning of what he calls the “golden era of autonomous,” marked by the upcoming launch of approximately 20 Model Y robotaxis in Austin this Sunday.

He believes this milestone will be foundational in Tesla’s transition toward full-scale AI-driven mobility.

According to Ives, the rise of autonomous vehicles could push Tesla’s market capitalisation to $2 trillion by the end of 2026, up from roughly $1 trillion as of this week.

He also expects Tesla to expand its robotaxi service to around 25 US cities over the next year and sees the full-scale production of “Cybercabs,” beginning in 2026, as the next major step in monetising the company’s autonomous strategy.

Ives argues that the AI component of Tesla’s business alone could add $1 trillion in value over the coming years.

While acknowledging that setbacks are inevitable, he maintains that Tesla’s scale and global reach position it to lead the autonomous vehicle market and potentially license its technology to other automakers worldwide.

He also noted that a second Trump presidency could help accelerate regulatory approvals for Tesla, potentially removing barriers that have slowed the company’s autonomous ambitions in the past.

Lawmakers oppose Tesla’s robotaxi launch

Two Texas state senators and five state representatives have signed a letter addressed to Tesla’s director of field quality, Eddie Gates, urging the company to postpone its planned robotaxi launch in Austin.

The lawmakers requested a delay until September 1, when a new state law governing self-driving vehicle safety is scheduled to take effect.

Tesla, according to CEO Elon Musk, intends to begin operations on Sunday with a limited rollout of its robotaxi service using a fleet of Model Y vehicles.

In their letter, the lawmakers asked Tesla to provide “detailed information demonstrating that Tesla will be compliant with the new law” should it proceed as planned.

Despite the pushback, the letter is unlikely to pose a serious obstacle.

With Republicans holding control of the governorship, state Senate, and House, investor concerns over regulatory interference from Democratic lawmakers are expected to remain limited.

The post Tesla stock gains ahead of robotaxi launch: analyst sees 50% upside ahead appeared first on Invezz

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