Tesla (TSLA) is preparing to launch its long-awaited robotaxi service, starting with a company-owned fleet supported by human teleoperators for safety, according to a Deutsche Bank note following a meeting with Tesla’s head of investor relations, Travis Axelrod. The electric vehicle maker plans to deploy the service in California and Texas next year, aligning with its earlier-stated goals, the bank revealed on Friday.
The robotaxi fleet will initially rely on an internally developed ride-hailing app, with teleoperators providing redundancy and safety oversight. Tesla remains focused on releasing its lower-cost vehicle in the first half of 2025, alongside additional new models later in the year. Deutsche Bank raised its price target for Tesla shares to $370 from $295, citing optimism about the company’s trajectory in autonomous driving and its broader vehicle portfolio.
Market Overview:
- Tesla plans to launch robotaxi services in California and Texas in 2025.
- The fleet will use teleoperators initially to ensure safety and reliability.
- Deutsche Bank increased its Tesla price target to $370 amid optimism.
Key Points:
- Robotaxi service to rely on a company-owned fleet and internal app.
- Teleoperators will provide backup for redundancy in the early stages.
- Plans for a lower-cost vehicle and new models remain on track for 2025.
Looking Ahead:
- Tesla's robotaxi rollout could set benchmarks for autonomous services.
- Success in California and Texas may lead to broader market expansions.
- Investors watch Tesla's progress in cost-efficient vehicle production.
Bull Case:
- Tesla’s robotaxi service launch in California and Texas positions the company as a leader in autonomous mobility, leveraging its self-driving technology.
- The use of teleoperators ensures safety and reliability during the early stages, building consumer trust and regulatory confidence.
- Deutsche Bank’s increased price target to $370 reflects growing investor optimism about Tesla’s trajectory in autonomous driving and vehicle innovation.
- The rollout of a lower-cost vehicle in 2025 could expand Tesla’s addressable market, driving higher adoption rates and revenue growth.
- Success in the robotaxi market could establish Tesla as a dominant player in urban transportation, creating new revenue streams beyond vehicle sales.
Bear Case:
- Reliance on teleoperators may raise operational costs, limiting profitability during the initial phases of the robotaxi service.
- Regulatory hurdles in California and Texas could delay the rollout or impose restrictions on Tesla’s autonomous services.
- Competition from established ride-hailing companies and other autonomous vehicle developers may limit Tesla’s market share in urban transportation.
- Failure to meet safety or performance expectations could damage Tesla’s reputation and slow adoption of its robotaxi services.
- The ambitious timeline for launching robotaxis and new models may strain Tesla’s resources, impacting execution and financial performance.
Tesla’s plans underscore its confidence in achieving a landmark in autonomous mobility while addressing safety through teleoperator support. The robotaxi launch marks a strategic step in revolutionizing urban transportation, leveraging Tesla’s self-driving advancements and operational control over its fleet.
With a focus on efficiency and innovation, Tesla continues to position itself as a leader in the EV and autonomous vehicle markets. The anticipated rollout of its robotaxi services, coupled with the upcoming release of cost-efficient models, sets a promising outlook for both customers and investors.
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
