Tesla's 2026 Could Be Pivotal Year as Robotaxi Business Gains Traction
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
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Source: stocktwits
- Robotaxi Outlook: ARK Investment Management highlights that Tesla's robotaxi business could account for 90% of the company's enterprise value by 2029, indicating a shift away from FSD subscriptions as the primary revenue source.
- FSD Subscription Shift: Tesla plans to stop selling Full Self-Driving for a one-time fee starting February 14, transitioning to a $99 monthly subscription model, aimed at boosting adoption amid regulatory pressures in California.
- Divergent Market Reactions: While Tesla shares rose nearly 1% in premarket trading, analysts are divided on the FSD transition, with some suggesting it may weaken Tesla's technological edge and maintaining a 'Sell' rating.
- Portfolio Dynamics: Tesla remains the largest holding in the ARK Innovation ETF, accounting for about 10% of the portfolio, but the position has declined by approximately 1.7% over the past year, reflecting market concerns about its long-term outlook.
Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 401.93 USD with a low forecast of 25.28 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 431.440
Low
25.28
Averages
401.93
High
600.00
Current: 431.440
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.
