Tesla's Robotaxi Business Poised for Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2026
0mins
Should l Buy TSLA?
Source: Fool
- Significant Market Potential: Tesla's robotaxi business is expected to scale up by 2026, with Musk stating that services will roll out in multiple U.S. cities this year; if realized, this prediction could provide strong competitive evidence for investors, especially against Waymo.
- Investor Confidence Boost: The launch of Tesla's first robotaxis in Austin could significantly enhance investor confidence in the company's long-term growth potential, particularly in its leadership in electric vehicles and autonomous driving.
- Substantial Valuation Risks: Tesla's price-to-earnings ratio stands at 390, far exceeding the S&P 500 average of 26, which necessitates that investors have immense confidence in the company's technological leadership and its ability to dominate the robotaxi market.
- Cautious Investment Advice: While the potential growth of the robotaxi business could act as a catalyst for Tesla's stock, given Musk's past overly optimistic projections that often fell short, investors should adopt a wait-and-see approach to mitigate risks associated with high valuations.
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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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