Tesla investors received a boost this week as Wall Street analysts raised price targets for the electric vehicle maker, citing growing confidence in its robotaxi ambitions. The upgrades follow Tesla’s recent demonstration of its Full Self-Driving (FSD) technology and CEO Elon Musk’s reiterated timeline for a functional robotaxi fleet by 2024.
Morgan Stanley analyst Adam Jonas increased his price target to $320 per share, writing in a note to clients that Tesla’s ‘lead in AI and fleet data creates an insurmountable moat’ in autonomous vehicles. Meanwhile, Wedbush’s Dan Ives maintained his Outperform rating, calling robotaxis ‘the golden goose’ that could double Tesla’s valuation.
The bullish sentiment comes despite ongoing regulatory scrutiny of Tesla’s autonomous claims. NHTSA currently has multiple open investigations into Tesla’s Autopilot system, with some safety advocates questioning whether the technology is ready for driverless deployment.
Industry analysts note that successful robotaxi deployment could transform Tesla’s business model from vehicle sales to mobility-as-a-service. ‘If Tesla captures even 10% of the projected $2 trillion future mobility market, today’s valuation looks conservative,’ said ARK Invest analyst Tasha Keeney.