Tesla Robotaxi Ride Was ‘Safe,' Says Daniel Ives, While Mishaps Make Headlines
Wedbush's top analyst, Daniel Ives, a long-time Tesla (TSLA) bull, shared his views after taking roughly 15-minute robotaxi rides in Austin. He said, 'The key takeaways are that it was a comfortable, safe, and personalized experience.' The analyst was highly encouraged by the soft-launch and stated that robotaxis exceeded his expectations, offering a seamless travel experience that has 'lit the spark for autonomous driving.' Ives has a Buy rating on TSLA with a Street High price target of $500, implying 52.7% upside potential from current levels.
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The electric vehicle (EV) company launched its robotaxi service in Austin, Texas, on June 22, and has been ferrying a select group of invite-only customers. Social media posts are flooded with both good and bad feedback, as well as videos of rides. Meanwhile, Tesla stock fell 3.8% yesterday on news of a 27.9% year-over-year decline in its auto sales in Europe and the UK in May.
Here's a List of Tesla Robotaxi Driving Errors
While some errors are minor, others are rather serious and have not gone unnoticed. The U.S. National Highway Traffic Safety Administration (NHTSA) said it is reviewing the incidents and will take action as required. For now, Tesla is conducting the test robotaxi drives with about 10 to 20 of its Model Y SUVs in a limited, geofenced area. Although all launches come with some hiccups, there is always room for improvement.
A robotaxi drove in the wrong lane for about six seconds. Despite turning on the left-turn signal, the robotaxi proceeded straight into the lane meant for oncoming traffic.
When a passenger hit the 'drop off early' button, the robotaxi stopped in a busy intersection of a six-lane road.
A sudden brake with no obstruction in sight caused the passenger to jerk forward, and belongings were thrown onto the floor of the taxi.
A robotaxi suddenly stopped in the middle of the lane while passing police vehicles.
Other minor incidents include driving over a curb and failing to identify a reversing truck which was trying to pull into a parking space.
CEO Elon Musk has tied the future of Tesla to autonomous driving. He has said that he wants to see thousands of robotaxis on the streets within months, and notably a million by the end of 2026. Even analyst Ives believes that Tesla's autonomous future is worth a trillion dollars alone. With only a few days of living the robotaxi dream, it remains to be seen whether Tesla will be able to live up to those giant-sized expectations.
Is Tesla a Buy, Hold, or Sell?
On TipRanks, TSLA stock has a Hold consensus rating based on 14 Buys, 12 Holds, and nine Sell ratings. Also, the average Tesla price target of $287 implies 12.4% downside potential from current levels. Year-to-date, TSLA stock has lost nearly 19%.
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