Tesla soars after robotaxi launch — but UBS says opportunity is 'already priced into the stock'
AP Photo/Eric Gay
- Tesla launched its robotaxi service in Austin on Sunday as an invite-only service for now.
- The EV maker's stock jumped more than 11% in morning trading.
- CEO Elon Musk has promised millions of robotaxis by 2026, but analysts say execution remains key.
Tesla posted big gains on Monday following the long-awaited launch of its robotaxi services in Austin.
The EV maker unveiled its robotaxi service on Sunday, giving small group of users in Austin access to the driverless rides for a flat $4.20 fee.
Shares opened modestly higher before jumping about 11% in late morning trading to above $355.
In a Monday note, analysts at UBS raised their target price on the stock by $25 to $215 while maintaining a "Sell" rating.
"Recall, Elon Musk indicated that autonomy is one of two (along with humanoid robots) main drivers of the stock's long-term value. While Tesla appears to be well positioned, we believe the opportunity is already priced into the stock," they wrote.
"We built out our robotaxi model and believe the opportunity is worth ~$99/share, which when considering other parts of TSLA's business, still leaves us cautious on TSLA's overall valuation."
In an X post on Sunday, Musk wrote: "Super congratulations to the @Tesla_AI software & chip design teams on a successful @Robotaxi launch!! Culmination of a decade of hard work. Both the AI chip and software teams were built from scratch within Tesla."
Earlier this month he teased the launch of the robotaxi, showcasing a driverless Tesla Model Y emblazoned with the Cybertruck-style branding, writing on X: "Beautifully simple design."
The rollout follows years of Musk promising multiple times that the robotaxi was just around the corner. Meanwhile, competitors such as Alphabet's Waymo have already demonstrated their autonomous taxis in multiple cities.
Lawmakers in Texas have been seeking tighter regulation of robotaxis, while some technical hurdles remain unresolved.
Tesla stock has struggled in recent months amid declining vehicle sales, but Monday's rise reduced the loss this year to less than 7%. Over the past 12 months, the shares have gained more than 90%.
Analysts have said that Tesla's low-cost, factory-scalable model could still give it an edge in the autonomous driving battle.