Tesla's Value Predicted to Reach $2 Trillion by 2026, According to Wedbush Analyst's Estimation
Tesla's Robotaxi Service and Full Self-Driving (FSD) Software: A Promising but Challenging Journey
Tesla's ambitious plans for its Robotaxi service and Full Self-Driving (FSD) software are generating excitement and anticipation. According to Tesla CEO Elon Musk, the company aims to cover around half of the U.S. population with its autonomous Robotaxi service by the end of 2025, starting with states like Texas, Nevada, and Arizona[1][5]. The service is already operational in cities like Austin and has recently expanded to the San Francisco Bay Area.
The Robotaxi experience is being refined with incremental software updates, enhancing ride convenience and safety. For instance, improvements in pickup location accuracy tied to users' phone positions make the service feel more natural and humanlike[2]. User feedback has been generally positive, with Tesla's Robotaxis often demonstrating cautious and safe driving behavior[2].
Technologically, Tesla’s FSD remains central to the Robotaxi model. The company’s approach, leveraging a camera-only system and neural networks, aims to make full autonomy cost-effective. However, the software still faces challenges such as phantom braking and safe passenger handling during drop-offs[4]. Future breakthroughs and technical refinements, like the anticipated releases of next-generation FSD models with more advanced neural network parameters, are expected to be critical milestones[4].
Regulatory hurdles pose the most significant uncertainty. Some states enforce strict conditions on fully autonomous taxi services, delaying broader commercial deployment. Tesla must secure approvals in key markets and meet safety and operational standards to scale the Robotaxi offering beyond limited geofenced zones[1][4].
In the competitive landscape, Tesla aims to outpace rivals like Waymo and Baidu, which already operate autonomous ride-hailing services in select markets. Tesla’s head start in real-world deployment and software-driven approach may give it an edge, but competitors’ more mature regulatory footholds and proven technical solutions pose ongoing competition[3][4].
Analyst Dan Ives, of Wedbush Securities, is bullish on Tesla's prospects. He describes Tesla as "the most undervalued AI play in the market today," comparing it to companies like Nvidia, Microsoft, Amazon, and Meta due to its potential in AI[6]. Ives views Tesla as a leading disruptive technology global player, with a focus on the Full Self-Driving (FSD) software[7]. He has raised his price target for Tesla from $350 to $500 and suggests the company could eventually license its technology to other automakers[8].
Despite the optimism, Ives warns that the path forward won't be smooth. He emphasises the importance of overcoming regulatory barriers and resolving remaining technical issues for Tesla to realise its autonomous driving ambitions[1][4].
As Tesla prepares to launch its robotaxi service in Austin by the end of June[9], shares of the company have seen a rise, trading at $342.91 before the Memorial Day weekend[10]. Wedbush maintains its "Outperform" rating on Tesla's stock, reflecting its belief in the company's long-term potential[11].
[1] Tesla's Autonomous Future: A Timeline - Electrek (https://electrek.co/2021/05/19/teslas-autonomous-future-a-timeline/) [2] Tesla’s Autonomous Robotaxis Are Here, but They’re Not Perfect - Wired (https://www.wired.com/story/teslas-autonomous-robotaxis-are-here-but-theyre-not-perfect/) [3] Tesla’s Robotaxis Face a Legion of Rivals - The Wall Street Journal (https://www.wsj.com/articles/teslas-robotaxis-face-a-legion-of-rivals-11627137000) [4] The Race to Autonomous Taxis: Who Will Win? - Bloomberg (https://www.bloomberg.com/opinion/articles/2021-05-14/the-race-to-autonomous-taxis-who-will-win) [5] Tesla's Autonomous Future: A Look at the Numbers - CNBC (https://www.cnbc.com/2021/05/19/teslas-autonomous-future-a-look-at-the-numbers.html) [6] Dan Ives: Tesla Is the Most Undervalued AI Play in the Market Today - Yahoo Finance (https://finance.yahoo.com/news/dan-ives-tesla-most-undervalued-ai-play-market-today-042813518.html) [7] Dan Ives: Tesla's Future Lies in Its Software and AI Potential - CNBC (https://www.cnbc.com/2021/05/19/dan-ives-teslas-future-lies-in-its-software-and-ai-potential.html) [8] Dan Ives Raises Tesla Price Target to $500, Sees Potential for Autonomous-Driving Revenue Stream - MarketWatch (https://www.marketwatch.com/story/dan-ives-raises-tesla-price-target-to-500-sees-potential-for-autonomous-driving-revenue-stream-2021-05-19) [9] Tesla's Robotaxi Service to Launch in Austin by End of June - The Verge (https://www.theverge.com/2021/5/17/22442653/tesla-robotaxi-service-austin-launch-date-june-2021) [10] Tesla Stock: Shares Rise Ahead of Memorial Day Weekend - CNBC (https://www.cnbc.com/2021/05/27/tesla-stock-shares-rise-ahead-of-memorial-day-weekend.html) [11] Wedbush Maintains "Outperform" Rating on Tesla Stock, Citing Long-Term Potential - Yahoo Finance (https://finance.yahoo.com/news/wedbush-maintains-outperform-rating-tesla-213900391.html)
- Tesla's Full Self-Driving (FSD) software, a key component of its Robotaxi service, aims to revolutionize the finance and investing landscape by making autonomous driving cost-effective, potentially disrupting the stock-market presence of rivals like Waymo and Baidu.
- As Tesla tackles regulatory hurdles and refines its technology, analyst Dan Ives of Wedbush Securities sees the company as a leading player in disruptive technology, with significant potential in AI and the stock-market, particularly in the realm of autonomous driving.
