Tesla has launched its autonomous robotaxi service in Austin, Texas, this month, featuring vehicles equipped with remote drivers that can intervene when necessary. Despite initial safety concerns highlighted in viral videos, Tesla’s stock rose by 7% on the launch day.
Cathie Wood, CEO of Ark Invest, predicts the global robotaxi market could reach between $8 trillion to $10 trillion, with 90% of Tesla’s market cap potentially stemming from this division. Analyst Dan Ives from Wedbush has a $500 price target for Tesla, asserting the robotaxi segment could add $1 trillion to its market cap by 2026.
While the potential for robotaxis is high, competitors like Uber and Alphabet’s Waymo have faced challenges in the self-driving space, raising questions about the reality of Tesla’s market prospects. Experts advise investors to approach expectations cautiously and understand that the evolution of this market will take time.
