Tesla stock rises premarket after robotaxi launch — but not as much as Elon Musk might like
The EV maker unveiled its robotaxi service on Sunday, giving small group of users in Austin access to the driverless rides for a flat $4.20 fee.
Shares were more than 2% higher at almost $328 as of 8:55 a.m. ET.
In a Monday note, analysts at UBS raised their target price on the stock by $25 to $215 while maintaining a "Sell" rating.
"Recall, Elon Musk indicated that autonomy is one of two (along with humanoid robots) main drivers of the stock's long-term value. While Tesla appears to be well positioned, we believe the opportunity is already priced into the stock," they wrote.
"We built out our robotaxi model and believe the opportunity is worth ~$99/share, which when considering other parts of TSLA's business, still leaves us cautious on TSLA's overall valuation."
Musk teased the launch of the robotaxi earlier this month, showcasing a driverless Tesla Model Y emblazoned with the Cybertruck-style branding. "Beautifully simple design," he posted on X.
The rollout follows years of Musk promising multiple times that the robotaxi was just around the corner. Meanwhile, competitors such as Alphabet's Waymo have already demonstrated their autonomous taxis in multiple cities.
Lawmakers in Texas have been seeking tighter regulation of robotaxis, while some technical hurdles remain unresolved.
Tesla stock has struggled this year, shedding almost 15% as of Friday's close, amid declining vehicle sales.
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Miami Herald
41 minutes ago
- Miami Herald
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Yahoo
an hour ago
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Tesla owner in disbelief after reviewing unsettling footage: 'File a police report'
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CNBC
an hour ago
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Tariffs are a wrinkle in back-to-school shopping. That's why we like these 3 retail stocks
The back-to-shopping season, a crucial time of the year for retailers, is being muddied by tariffs and budget-conscious consumers. That backdrop has forced retailers to get creative to protect margins while shoppers hunt for deals on clothes, dorm-room decor and more. Tariffs are front and center. Just over half of respondents to UBS's back-to-school survey last month cited elevated import duties as a top economic concern, behind only inflation. The result is "lackluster" consumer spending intentions, according to UBS. Based on its survey data, the firm estimated that spending on clothing, shoes, and accessories will decline 2.3% year over year. That's in line with a forecast from the National Retail Federation . The trade group predicted that families with students in elementary through high school will spend an average of $858.07 on clothing, shoes, school supplies and electronics — about 2% less than 2024's $874.68. 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Costco Costco stands out as a retailer that has embraced all these strategies to address the tariff risk. Historically, the company is known for pressing suppliers to cut prices before considering passing costs on to consumers. If suppliers don't play ball, Costco can choose to put more of its private label Kirkland Signature brand on its shelves instead. Leveraging Kirkland is an important lever for the company because it comes with better margins and allows Costco to control more its supply chain. On its latest earnings call in late May, management highlighted additional tactics, including sourcing inventory from other countries not subject to tariffs, leverage its global footprint to reroute products sourced from countries exposed to tariffs, and pull forward inventory purchases on items such as sporting goods, allowing it to hold prices or only increase them slightly. These measures have helped the business maintain momentum during a challenging operating environment for retailers. Indeed, its monthly sales reports have continued to show strength across categories despite a tougher retail backdrop. TJX Companies For TJX, the off-price model itself functions as a built-in defense against tariff pressures. As Telsey Advisory Group's Dana Telsey wrote in her back-to-school 2025 outlook, discount formats are set to "dominate expected BTS shopping." She added that off-price retailers like TJX are positioned to keep capturing share as shoppers trade down "in search of value and secondhand options amid ongoing macro caution." That's because TJX's flexible and opportunistic buying model allows it to absorb cost pressures while still offering branded goods at steep discounts compared with what a full-price retailer offers. Telsey maintains a buy-rating on the stock with a $150 price target. UBS echoed that optimism in a separate preview note, forecasting "solid sales momentum" and an earnings beat when the company reports fiscal second-quarter results Wednesday, along with the potential to raise guidance. "Not only do we expect TJX to take major share from department stores, but also we believe TJX should benefit from the disruption tariffs may cause for US retailers" in the second half of 2025, UBS wrote. The firm reiterated its 12-month buy rating on TJX and a price target of $164 on the stock. Amazon One of the most popular destinations for back-to-school shopping this year is online retailers, favoring Amazon's colossal e-commerce marketplace, per the NRF. According to the firm, many back-to-school shoppers planned their purchases around the retailer's discount-heavy Prime Day in July, which ran four days this year instead of 48 hours. In its survey work, Telsey similarly found that the vast majority of respondents were looking to find school supplies on sale — and data suggests they did just that. July Prime Day proved to be a huge early back-to-school shopping opportunity, with sales of school supplies, including backpacks, lunchboxes, binders and kids apparel, up a massive 175%, according to Adobe for Business . The internet category is "ready to capture shares during the back-to-school shopping season by highlighting value-focused school essentials and discretionary products," wrote Telsey. Amazon's appeal isn't just pricing, but also its speed. The combination of competitive deals and fast delivery enables students to grab essentials early with convenience. That's why Telsey believes Amazon "should continue to gain share ... given the timing of its Prime Day, combined with the leverage of Prime members data over a wider selection of products, and faster fulfillment." Bottom line Back-to-school spending may look softer on the surface this year, but this environment is still creating winners among retailers. Rising tariffs and shaky consumer sentiment are pressuring households, prompting them to shop earlier and hunt for deals to make their dollars go further. For investors, this means value players like TJX, Costco and Amazon stand to capture more dollars from parents who prioritize affordability. With tariff-driven inflation still filtering through, we are staying selective in our retail exposure, leaning toward companies that can both protect their margins and delivery value to cost-conscious consumers. TJX, Costco and Amazon check those boxes. (Jim Cramer's Charitable Trust is long COST, TJX, AMZN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
