Since peaking at $498.83 in December, Tesla (TSLA) slipped to a recent low of $364.46, where the oversold stock is starting to pivot.
Helping, Morgan Stanley says Tesla’s robotaxi rollout is the most important catalyst. The firm added that: “Superior robotaxi unit economics are supported by vertical integration and innovative Cybercab production – Tesla is changing the way cars are made.” He added that each mile driven by the robotaxi fleet will also help improve the AI model for FSD [Full-Self Driving].
In addition, Tesla could be one of the best-positioned to dominate the market, says brokerage firm New Street Research. The firm also has a buy rating on the stock with a $600 price target, arguing that Tesla has three unique advantages over the competition. That includes low unit costs, a flexible supply model, and an existing fleet.
And, with an outperform rating and a $500 price target on Tesla, Wedbush managing director, Dan Ives said on X, “We believe Tesla and Musk are heading into a very important chapter of their growth story as the AI Revolution takes hold and the Robotaxi opportunity is now a reality on the doorstep. Investors are starting to see through the near-term demand issues for Tesla and recognize that Tesla is in a pole position to be a clear leader in the autonomous market opportunity with Robotaxis set to scale to 30 to 35 cities in the US over the next year.”
In addition, the global robotaxi market is expected to grow from about $10.11 billion in 2025 to $18.27 billion this year and to about $2 trillion by 2034, as noted by Fortune Business Insights.
Sincerely,
Ian Cooper
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