Guggenheim Sees Tesla Stock Dropping Nearly 50% Despite Robotaxi Progress

Guggenheim analyst Ronald Jewsikow expects Tesla's Robotaxi service to open to the public next month, quicker than expected. The service represents confidence in the service, but Jewsikow remains bearish on Tesla shares with a Sell rating and $175 price target, implying a nearly 50% plunge from current levels.

Tesla's push into the robotaxi market continues to generate significant buzz and investor interest. According to Guggenheim analyst Ronald Jewsikow, the company's robotaxi service is expected to open to the public in New York City next month, earlier than initially anticipated. This development reflects growing confidence in Tesla's autonomous driving capabilities and its ability to navigate regulatory hurdles.

However, despite the positive outlook, Jewsikow maintains a bearish stance on Tesla shares. He has assigned a Sell rating with a $175 price target, implying a nearly 50% plunge from current levels. This cautious view is influenced by mixed market signals and ongoing concerns about the company's safety record and regulatory compliance.

In Texas, Tesla has secured a permit to operate its robotaxi service across the state, marking a significant milestone in its expansion plans. The Texas Department of Licensing and Regulation (TDLR) 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 move positions Tesla as a direct competitor to established ride-hailing services like Uber and Lyft.

The robotaxi service's initial rollout in Austin has been marked by both success and controversy. While Tesla has been operating a pilot program since June 2025, offering rides to a select group of influencers and industry analysts, the service has faced safety concerns and regulatory scrutiny. The National Highway Traffic Safety Administration (NHTSA) is investigating incidents involving Tesla's robotaxis, including crashes and safety system failures [1].

In New York City, Tesla is hiring test drivers for its robotaxi service in Queens, with a job posting indicating a need for "Vehicle Operators, Autopilot" [2]. However, the company has not yet sought the necessary permits to conduct testing on city streets, raising questions about its readiness for a full-scale launch.

Despite these challenges, Tesla's robotaxi service has the potential to revolutionize urban transportation and ride-hailing economics. If successful, the service could encourage more residents and tourists to adopt electric vehicles, contributing to the reduction of pollution at scale.

References:

[1] https://carboncredits.com/tesla-robotaxi-secures-permit-in-texas-fuels-tsla-stock-surge-and-market-buzz/
[2] https://www.thecooldown.com/green-business/tesla-robotaxi-nyc-queens-hiring/