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Key Takeaways
- Tesla could be on the path to doubling its market cap by the end of next year, according to Wedbush analysts led by Dan Ives.
- The EV maker is scheduled to launch its robotaxi service this weekend, with 10 to 20 vehicles operating autonomously on the streets of Austin, Texas.
- The stock has recovered most of the ground it lost as CEO Elon Musk and President Donald Trump traded insults online earlier this month.
Tesla’s (TSLA) market capitalization, currently hovering just over $1 trillion, could start down the road to doubling in value by the end of 2026 if its robotaxi launch goes well this weekend, Wedbush analysts led by Dan Ives wrote Friday.
Keeping their “outperform” rating and Street-high $500 price target, Ives and his colleagues wrote Friday that they “believe the march to a $2 trillion valuation for TSLA over the next 12 to 18 months has now begun in our view with [Full Self-Driving] and autonomous penetration of Tesla’s installed base and the acceleration of Cybercab in the US representing the golden goose.”
Tesla CEO Elon Musk said last week that the company was tentatively targeting a June 22 launch for its robotaxi program in Austin, Texas. The analysts said invites have been sent out “giving selected Tesla users permission to use the Model Y Robotaxi service starting on Sunday.”
Musk has said the plan is to start with 10 to 20 Model Y vehicles carrying paying passengers fully autonomously around a specific, “geo-fenced” area of Austin. Tesla plans to eventually expand to more vehicles in several other cities, and allow Tesla owners to add their vehicle to an Uber (UBER)-like fleet, and start producing the Cybercab with no steering wheel or pedals next year.
Also Friday, Tesla announced on Chinese social media service Weibo that it has signed an agreement to build its first grid-scale battery power plant in China.
Bullish Analysts Eager to Shift Focus Away From Recent Musk-Trump Spat
Bullish analysts have been eager to shift focus for Tesla stock to the robotaxi launch and away from Musk’s public split with President Donald Trump earlier this month, while more bearish analysts have said the feud could complicate the company’s regulatory path.
Earlier this week, a group of Texas lawmakers sent Tesla a letter asking the EV maker to pause its robotaxi launch until a new version of its autonomous vehicle regulations go into effect at the start of September.
Tesla shares rose less than 1% in recent trading to about $324. They are down about 20% on the year, but have recovered most of the ground lost as Musk and Trump traded online barbs earlier this month.
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