Tesla Stock Jumps: Here's What Daniel Ives Expects as Robotaxi Rollout Begins
Well, finally it happened. No, there's not peace in the Middle East (unfortunately), but Tesla (NASDAQ:TSLA) did kick off its long-awaited robotaxi launch in Austin, Texas, on Sunday. Still, how much these self-driving cars truly represent an autonomous driving experience is up for debate. That didn't stop TSLA stock from jumping 8% in Monday's trading session.
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Crucially, the service isn't available to the general public and doesn't operate entirely without oversight, despite Elon Musk's earlier claims. Each vehicle has a Tesla employee sitting in the front passenger seat as a safety monitor, ready to shut things down if needed. The rides are also confined to a specific, well-mapped part of the city. In some situations, Tesla adds an extra layer of caution by deploying chase cars and remote drivers for support, although some vehicles have been seen operating without them.
With that disclosure out of the way, Wedbush analyst Daniel Ives is ready with the plaudits.
'Going into it, we expected to be impressed but walking away from it, all there is to say is that this is the future,'Ives excitedly said.
The analyst took two rides, each lasting around fifteen minutes, through Austin and reported that the overall experience was comfortable, safe, and user-oriented. The rides were notably smooth, with no indication that the vehicle was operating without a driver – at no point did the car behave unpredictably or irrationally.
Inside the vehicle, there are two touchscreen panels: one positioned in the front and another in the back row above the air conditioning vent. The rear panel connects with the user's Tesla account and syncs with the Robotaxi app, automatically pulling up the user's media content across various apps. During one of the trips, the car navigated a park route that included dirt roads and traffic cones without issue, ultimately arriving at the exact pickup location with precision.
So, Ives had a good time, and going by his outlook for the service, investors are about to enjoy themselves as well, as this is the starting point for a '$1 trillion autonomous journey.'
'Overall,' the analyst summed up, 'these Robotaxis exceeded our expectations and offered a seamless and personalized travel experience that has lit the spark for autonomous driving.'
Bottom line, Ives rates TSLA shares an Outperform (i.e., Buy), along with a Street-high $500 price target, implying the shares will gain 55% in the months ahead. (To watch Ives' track record, click here)
That's a bull's take, and while 13 other analysts join Ives in that camp, there are also 12 Hold ratings and 9 Sells, bringing the analyst consensus to a Hold (i.e., Neutral). Based on the $287 average price target, shares are expected to be trading at an ~18% discount a year from now. (See TSLA stock forecast)
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