Tesla's Robotaxi Rollout Delayed to 2026, Investor Confidence Shaken
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Yahoo Finance
- Slow Robotaxi Progress: CEO Elon Musk initially projected that Tesla's autonomous ride-hailing service would cover half of the U.S. population by year-end, but as of October, only eight to ten metro areas are expected to be operational, indicating significant delays that may undermine investor confidence.
- Cybercab Production Plans: Musk outlined plans for Cybercab production to start in Q2 next year, yet at the annual meeting, he stated mass production would begin in April, with early production expected to be 'agonizingly slow', potentially wasting cash and resources.
- Regulatory Approval Risks: Musk indicated that the production rate of Cybercabs would roughly match the pace of regulatory approvals, but investors are skeptical, fearing that production may commence without necessary approvals, increasing financial risks.
- High-Risk, High-Reward Investment: Despite delays, Tesla is still viewed as a high-risk, high-reward growth stock, with investors willing to overlook short-term issues in anticipation of its long-term potential in ride-sharing revenue, which could fundamentally change the market landscape.
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: 449.360
Low
25.28
Averages
401.93
High
600.00
Current: 449.360
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.
