Analysts Look to Tesla’s Robotaxi Launch After Stock Hit From Musk-Trump Spat

Tesla (TSLA) is expected to launch its robotaxi service in Austin, Texas, as soon as this week, with the electric vehicle maker’s stock in need of a lift after a week marked by political strife between CEO Elon Musk and President Trump.

The stock rebounded nearly 4% to close just above $295 Friday, after tumbling 14% on Thursday. They’ve lost roughly one-quarter of their value since the start of the year.

Tesla bulls believe a robotaxi program could drive substantial upside in the company’s stock. Bloomberg last month reported that Tesla was targeting a June 12 launch, citing a person familiar with the matter, adding that the date could change. The company has not confirmed that date, and Tesla did not respond to Investopedia’s request for comment in time for publication.

Musk said in last month’s earnings call and a May 20 interview with CNBC that the company was still on track to launch the program by the end of the month. The start of the program, Musk told CNBC, will likely be about 10 Model Y vehicles operating autonomously, with the company later expanding to more vehicles and cities.

Tesla owners will eventually be able to add their vehicle to the available fleet of Teslas to rent for a ride, Musk has said, which could help Tesla scale the project before the Cybercab goes into production next year.

Oppenheimer analysts recently wrote that the company’s ability to get its software to drive fully autonomously with its current suite of cameras could be “key to its technology leadership and stock performance,” but added they believe it might take at least one or two more hardware and software updates before Tesla can deliver reliable autonomous performance.

More bullish analysts, like Wedbush’s Dan Ives, have said they think successful autonomous driving software will be the start of technology that will eventually add $1 trillion in value to the company.

Overall, analysts are somewhat divided on Tesla’s stock, with 10 of the brokers tracked by Visible Alpha giving the stock a “buy” rating, with four “hold” and four “sell” ratings. Their average price target is about $304, slightly above Friday’s closing level, but their price targets range from as low as $120 to as high as $500.