Analysis of Tesla's Robotaxi Business Prospects
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 10 2026
0mins
Should l Buy TSLA?
Source: Fool
- Surge in Robotaxi Numbers: During Tesla's Q4 2025 earnings call, Musk stated that over 500 robotaxis are operating in Austin and San Francisco, with expectations to double monthly, significantly enhancing Tesla's competitive edge in the autonomous driving market.
- Regulatory Approval Challenges: While Musk predicts that by year-end, robotaxis could be present in a quarter to half of the U.S., the complexities of regulatory approvals may delay this goal, impacting Tesla's market expansion speed.
- Safety Concerns Raised: The operation of Tesla's robotaxis without human monitoring in Austin has been questioned, with the independent Robotaxi Tracker reporting only four out of 58 vehicles are unsupervised, potentially undermining public trust and regulatory approval.
- Significant Capital Expenditure Increase: Tesla plans to more than double capital expenditures to support the production of robotaxis and Optimus humanoid robots, but analysts expect no free cash flow in 2026 or 2027, suggesting that market expectations for Tesla's future success may be overly optimistic.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 381.260
Low
25.28
Averages
401.93
High
600.00
Current: 381.260
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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