Tesla (NASDAQ:TSLA) stock has been a hot topic among analysts lately, with CFRA Research analyst Garrett Nelson leading the charge in predicting a bright future for the electric vehicle company. Nelson believes that Tesla’s robotaxi business will be a major driver of the stock’s growth in the coming years.
In a recent interview on Schwab Network, Nelson expressed his bullish outlook on Tesla, citing the company’s potential in the autonomous driving market. He stated, “We remain bullish on Tesla, Inc. because we’re optimistic as far as regulatory approvals and getting a regulatory framework related to autonomous driving in the United States. I think that will come sooner rather than later.”
Nelson went on to explain that Tesla’s Robotaxi Day in October highlighted the company’s focus on autonomous driving technology. He believes that Tesla is currently trading at a fraction of its market potential, estimating the global autonomous driving opportunity to be over $5 trillion. With this in mind, Nelson sees the recent dip in Tesla’s stock price as a buying opportunity.
Morgan Stanley analysts share Nelson’s optimism, having recently forecasted an $800 bull case scenario for Tesla based on the potential of its robotaxi business. Tesla is expected to launch robotaxi services with unsupervised self-driving capabilities in Austin by June 2025. CEO Elon Musk has even predicted that these services will be available in multiple cities across the United States by the end of this year.
Despite the positive outlook from CFRA Research and Morgan Stanley, not all analysts are convinced that Tesla’s robotaxi fleet will be a game-changer for the company. Gary Black, for example, predicts that less than 50% of Tesla owners will be willing to include their vehicles in the publicly-used fleet. He argues that many Tesla owners may be reluctant to share their personal vehicles with strangers.
As the debate over Tesla’s future continues, it’s clear that the company’s robotaxi business is a key focus for investors and analysts alike. Whether Tesla can capitalize on the growing demand for autonomous driving technology remains to be seen, but one thing is certain – the electric vehicle company is poised for continued growth in the coming years.