Tesla robotaxi launch heralds 'trillion-dollar' new autonomous era
Last updated: 14:30 20 Jun 2025 BST, First published: 14:26 20 Jun 2025 BST
Wedbush sees a 'trillion-dollar' new autonomous era beginning for Tesla Inc (NASDAQ:TSLA) with the launch of its Model Y Robotaxi service in Austin this Sunday.
The rollout will start small, about 20 cars operating in a “geofenced” area, but Wedbush expects the service to steadily grow across roughly 25 US cities over the next year.
This launch is a big deal, marking what Wedbush calls the “golden era” of Tesla’s autonomous ambitions.
After years of scepticism about Tesla’s Full Self-Driving (FSD) technology, the company is finally turning its vision into reality.
Wedbush believes this autonomous AI opportunity alone could add around $1 trillion to Tesla’s valuation in the coming years.
It also expects the federal regulatory environment to become friendlier under the new US administration, which could speed up approvals and clear the way for faster growth.
Wedbush points out that although Elon Musk and the President have had a complicated relationship, the Trump administration prioritises US leadership in the AI race, and autonomous driving is a key part of that.
Wedbush says Tesla remains the most undervalued AI play in the market.
While the autonomous vision won’t happen overnight and will face setbacks, Tesla’s scale and technology give it a strong chance to dominate the market. The company could also license its tech to other automakers worldwide.
Looking ahead, Wedbush highlights that full production of Tesla’s Cybercab, a purpose-built autonomous vehicle, is expected to start next year. This will be a major step towards monetising Tesla’s autonomous ambitions.
In a bullish case, Wedbush thinks Tesla could hit a $2 trillion market cap by the end of 2026, as autonomous driving gains traction and the robotaxi fleet expands.
Its current price target stands at $500, up from the recent $322 share price.
In short, Wedbush views Tesla’s autonomous push as a game-changer, with huge growth potential and plenty of catalysts to watch.
