Can Robotaxi Drive Tesla’s Stock to New Heights?
Since its April 22 earnings report, Tesla’s stock has surged more than 50%, reclaiming its spot among companies with a $1 trillion market cap.
Despite earnings falling short of Wall Street expectations, CEO Elon Musk’s pledge to reduce involvement in White House-related activities and focus on Tesla’s operations alleviated uncertainty. Early Wednesday, Musk announced on X that his role as a special government employee in the DOGE is nearing its end.
Prior market concerns about leadership stability eased after Musk’s late-April earnings call, where he pledged to limit political involvement and prioritize Tesla’s business. This shift reignited enthusiasm among retail and institutional investors, refocusing attention on Tesla’s products, growth, and competitive edge.
Additionally, easing macroeconomic factors, such as tariff risks, have bolstered overall market sentiment.
Will the Rally Continue?
Historically, June is one of Tesla’s strongest months, with an average return of 10.26% over the past 15 years, second only to November’s 11.68%. The stock has a 79% chance of rising in June, the highest probability of any month.
This year, $Tesla (TSLA.US)$ plans to launch its autonomous robotaxi service in Austin by late June (Bloomberg reports, citing sources, indicate June 12), a development analysts see as a potential catalyst for the stock.
Musk stated the service will start with about 10 vehicles in Austin, with plans to scale to thousands if the rollout is accident-free. Tesla aims to expand the service to Los Angeles and San Francisco following the Austin debut.
Cathie Wood of ARK Invest is bullish on the venture, stating in a recent Bloomberg interview, “We believe Tesla will dominate the U.S. autonomous taxi market.” Piper Sandler maintained its Overweight rating and $400 price target last week, citing the Austin robotaxi launch as a key point of interest.
New Highs on the Horizon?
Wedbush analyst Dan Ives raised Tesla’s price target from $350 to $500 last Friday, implying nearly 40% upside from current levels and surpassing Tesla’s all-time high of $488.
In a note to clients, Ives wrote, “We believe the golden age of autonomous is now on the doorstep for Tesla with the Austin launch next month kicking off this key next chapter of growth for Musk & Co.”
Ives predicts Tesla’s market cap could approach $2 trillion in the next 12-18 months, with AI and autonomous driving contributing at least $1 trillion in value. “We are raising our price target … reflecting this massive stage of valuation creation ahead,” he added.
Source: Trading View, CNBC
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Moomoo News Global
Moomoo News Official Account
Follow the top news of US market!
64K
Followers
8
Following
37K
Visitors
Follow
Market Insights
Popular Gold Mining Stocks Popular Gold Mining Stocks
Amidst the uncertain outlook of the trade war and escalating concerns about an economic recession, gold prices have repeatedly reached new highs this year, at one point surpassing $3,500 per ounce. This marks an almost 30% increase since the beginning of the year. For investors in U.S. equities, investing in gold mining stocks represents a significant opportunity to ride this wave. Amidst the uncertain outlook of the trade war and escalating concerns about an economic recession, gold prices have repeatedly reached new highs this year, at one point surpassing $3,500 per ounce. This marks an almost 30% increase since the beginning of the year. For investors in U.S. equities, investing in gold mining stocks represents a significant opportunity to ride this wave.
Unlock Now
Discussing
Gold has rebounded to $3,300! It's time to get on board?
🎙️ Discussion: 1. Has it $Gold Futures (AUG5) (GCmain.US)$ rebounded to $3,300? Will the short-term trend continue to rise? 2. What factors
Options Newsman
May 6 20:45
S&P 500's Put/Call Ratio Hits 5-Year Low: Fear Fades and Bottom Near?
Vincent JP : If I were Soros, the driver for a staged accident would have already been arranged. If I were Musk, rather than being set up by others, I would proactively arrange a staged accident myself and sort it out.
Ttowbin23 : wedding money all in . dont tell my daughter!!!!
Tonyco : Robotaxi is not going to work.
No lidar, only cameras
103401372 : Agreed, the scam team is ready.