The List of Analysts Who Think Tesla Will Benefit Immensely From Robotaxis Keeps Growing

Core Viewpoint - Tesla is focusing on transitioning to robotics and autonomous vehicles (AVs), with CEO Elon Musk prioritizing this shift, which is also tied to his potential $1 trillion pay package [1][2] Group 1: Analyst Perspectives - Some analysts are optimistic about Tesla's self-driving vehicle ambitions, with Stifel analyst Stephen Gengaro suggesting a potential 25% increase in Tesla's stock if AV goals are met [3][4] - Analysts believe that robotaxis will be a significant growth area for Tesla, with Gengaro emphasizing the importance of the full self-driving system and robotaxi services in his valuation [4] - The autonomous vehicle market is projected to be worth $1.4 trillion by 2040, supporting the long-term opportunity for Tesla in this sector [5] Group 2: Financial Projections - Cathie Wood of Ark Invest estimates that by 2029, 90% of Tesla's enterprise value and earnings could derive from autonomous systems [6] - Wedbush's Dan Ives predicts Tesla's market cap could reach $2 trillion by the end of next year due to its AV initiatives [6] - Gene Munster forecasts that up to 40% of Tesla's operating income could come from robotaxis and licensing full self-driving technology by 2030 [6] Group 3: Current Challenges - Tesla's financial performance is currently under pressure, with GAAP net income declining 37% to $1.4 billion in Q3, while operating expenses increased by 50% to $3.4 billion [8] - The company faces significant costs in developing its Cybercabs and investing in AV technologies, compounded by the expiration of EV tax credits and a shift in consumer interest towards hybrids [9][10] - Despite the challenges, Tesla's ambitions in the autonomous vehicle space are not necessarily doomed, but investors are advised to adopt a cautious approach given the current financial landscape [10][11]