Tesla can rally 45% thanks to its leg up over competitor Waymo, says Benchmark

CNBC

26-06-2025

The time has come to go all in on Tesla , according to Benchmark Equity Research. In a Thursday note, Benchmark analyst Mickey Legg raised his price target for the electric vehicle maker to $475 per share from $350, citing Tesla's recent robotaxi launch as a catalyst. That forecast implies upside of 45%. Tesla began offering its robotaxi service on Sunday to a select group of early-access individuals in Austin, Texas. "While limited, we believe the controlled rollout demonstrates a controlled and safety-first approach," Legg wrote. "Winning over regulators and public opinion is paramount and will allow a rapid scale up if achieved, in our opinion. New regulations for autonomous vehicles are set to go into place on Sept. 1 in TX that we believe will further help win trust and pave the way for expansion to additional cities." TSLA YTD mountain TSLA YTD chart The analyst added that Tesla has a better value proposition than Waymo, its main competitor in autonomous vehicles. Legg believes that Tesla's more cost-effective and scalable camera-focused approach could beat out Waymo — despite the latter's first-mover advantage. "The average cost of a Waymo is over six-figures, well over the cost to produce a Model Y," the analyst wrote. Tesla's balance sheet also looks healthy and balanced, with the excess free cash flow it has produced in recent quarters "providing plenty of fresh powder to fund growth opportunities down the road," Legg said. Legg added analysts have already priced in a year-over-year decline in second-quarter deliveries, which Tesla is expected to report next week. "Growth ahead remains in the form of expanding the robotaxi business, model refreshes, and Optimus robots, long-term," the analyst said. "In our view the company is undergoing an evolution from a trailblazing vehicle OEM to a high-tech automation and robotics company with unmatched domestic manufacturing scale."