Tesla Grapples With Threats on All Fronts

Core Insights - Tesla faces significant challenges including increased competition, rising costs, and regulatory scrutiny, yet analysts remain optimistic about its future prospects [2][5]. Competition and Regulatory Challenges - Tesla is experiencing heightened competition in the electric vehicle market, particularly in the robotaxi sector, where it currently only operates in Austin [4]. - The company is under investigation by US safety regulators regarding potentially dangerous door malfunctions, with 140 incidents reported since 2018, some linked to fatalities [3][4]. Analyst Sentiment and Market Response - Despite the challenges, analysts are optimistic; Baird upgraded Tesla's stock from hold to buy, citing a potential "physical AI inflection" that could enhance its robotaxi and robotics businesses [5]. - Goldman Sachs raised its price target for Tesla from $300 to $395, anticipating a surge in car sales before the expiration of the $7,500 federal EV tax credit [5]. Industry Developments - Competitors like Waymo are expanding their robotaxi services, with plans to launch in Nashville and partnerships to integrate robotaxis into public transit systems [7]. - Nvidia is considering a $500 million investment in Wayve, a self-driving car startup that already operates in multiple cities [7].