Tesla’s rollout of its robotaxi will usher in a “golden age of autonomous” and could send the EV maker’s beaten-down stock soaring 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 note.
He estimated that autonomous driving is a $1 trillion opportunity for Tesla and could push the EV maker’s market cap to $2 trillion by the end of 2026.
Uber and Waymo will also benefit largely from autonomous driving opportunities, Ives added.
Backlash over Musk’s role as DOGE cost-cutter have weighed on Tesla stock, with shares down about 10% this year. The stock ticked up 0.5% on Friday as of 2 p.m. ET.
The President Trump-backing mogul announced he is stepping back from his White House involvement this week and committed to leading the company for five more years.
Musk earlier this week confirmed that Tesla plans to have autonomous robotaxis driving on the streets of Austin, Texas, by the end of June, with future plans for rollouts in Los Angeles and San Francisco.
If the launch goes smoothly, Tesla will rapidly expand the number of robotaxis in service in Austin, the world’s richest person said.
It’s a long time coming, as Musk has been telling Tesla investors that self-driving taxis are just a year away since 2016.
While Tesla currently sells vehicles with self-driving capabilities, they require human supervision. The robotaxi would mark the automaker’s first fully autonomous car.
Ives said his optimism on Tesla is also linked to Musk’s reduced role in the White House.
Most recently, the billionaire tech founder said he will drop in on the White House “for a couple days every few weeks,” a major pullback from his current proximity to the president.
His role in the government agency “created brand damage and a black cloud” over Tesla, Ives said.
Protests have broken out at Tesla dealerships across the nation as demonstrators decry his intense government cuts, like slashing federal jobs and spending at the Department of Education, US Agency for International Development and National Institutes of Health.
There have been arson attacks at Tesla showrooms, with Molotov cocktails tossed at cars.
Investors have also grown frustrated with Musk’s involvement in DOGE, viewing it as a time-suck away from his attention on Tesla. Musk also owns several other companies, including The Boring Company, SpaceX and social media platform X.
While the robotaxi launch is promising, Tesla still faces several challenges, including a slump in overseas sales.
Chinese rival BYD sold more electric vehicles in Europe than Tesla for the first time ever last month.
Tesla reported yet another monthly drop in Europe sales, with volumes plunging 49% in April from the year before, according to a report from JATO Dynamics.
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