Guggenheim Analyst: Tesla's Austin Robotaxi Service Launch 'Quicker Than Expected'

Tesla's Austin Robotaxi service opening to the public is faster than expected, according to Guggenheim analyst Ronald Jewsikow. The public launch is a "key step" to engage a broader consumer group, but skepticism among fans may be warranted. Jewsikow maintains a Sell rating on Tesla with a price target of $175.

Tesla's Austin Robotaxi service, initially launched in an invite-only phase in June, is set to open to the public in September, according to a recent announcement by CEO Elon Musk. The accelerated timeline, which was not anticipated by many investors, reflects the company's confidence in both its technology and the feedback received from early riders.

The move comes after Tesla secured necessary permits to operate its Robotaxi service across the state of Texas. The Texas Department of Licensing and Regulation has granted Tesla Robotaxi LLC a permit to operate as a transportation network company (TNC), allowing the company to deploy fully autonomous vehicles without human safety drivers [1]. This development marks a significant milestone for Tesla, positioning it as a direct competitor to established ride-hailing services like Uber and Lyft.

Guggenheim analyst Ronald Jewsikow, who maintains a Sell rating on Tesla with a price target of $175, expects the public launch to be a "key step" to engage a broader consumer group. However, he also cautions that skepticism among Tesla's fanbase may be warranted. Despite the positive outlook on the Robotaxi service, Jewsikow remains bearish on Tesla shares, attributing this to mixed market signals and ongoing concerns about the company's safety record and regulatory compliance [2].

Tesla shares have climbed 7.5% in the past six weeks but remain more than 30% below their 52-week high. The EV maker's market cap sits at $1.09T, ranking it the 10th largest U.S. company [3].

References:
[1] https://finance.yahoo.com/news/tesla-open-austin-robotaxi-september-001104802.html
[2] https://ca.finance.yahoo.com/news/guggenheim-reaffirms-sell-tesla-ahead-121507868.html
[3] https://finance.yahoo.com/news/guggenheim-says-tesla-tsla-opening-040143135.html