Tesla Stock: RBC Analyst Sees Future Upside in Robotaxis, FSD, and Humanoid Robots

RBC analyst Tom Narayan reaffirmed his Outperform rating on Tesla stock and raised his price target to $325 from $319. He believes the company's long-term upside lies in its future bets: robotaxis, Full Self-Driving, and humanoid robots. Narayan estimates the robotaxi business alone could generate nearly $190 billion in annual revenue by 2040.

Title: RBC Analyst Raises Tesla Price Target to $325, Highlighting Future Growth in Robotaxis and FSD

RBC Capital has raised its price target on Tesla (NASDAQ:TSLA) to $325 from $319 while maintaining an Outperform rating on the stock. The new target aligns closely with Tesla’s current trading price of $325.59, though analyst targets range widely from $115 to $500, according to InvestingPro data [1].

The firm cited the better-than-feared Austin robotaxi launch as a key factor in its decision to increase the target price. Tesla is now looking to expand the service to additional cities, which could significantly boost the company's revenue. RBC Capital acknowledged that regulatory hurdles remain for Tesla’s autonomous vehicle ambitions, which could impact the pace of the robotaxi rollout across different markets.

RBC Capital also expressed caution about Tesla’s traditional automotive business, expecting pressure in the coming quarters due to the end of Inflation Reduction Act (IRA) credits. High levels of used electric vehicle inventory were highlighted as a near-term challenge for Tesla’s auto business performance over the next several quarters.

In other recent news, Tesla has been making significant strides with its robotaxi service. The company began operating its service in Austin, Texas, with unsupervised Model Y vehicles, and plans to expand to the Bay Area, including San Francisco, as early as this weekend. Cantor Fitzgerald has reiterated an Overweight rating on Tesla, maintaining a price target of $355, citing the expansion of the robotaxi service as a key factor. Additionally, Stifel has reiterated its Buy rating with a price target of $450, highlighting Tesla’s successful launch and expansion of its robotaxi service in Austin. Stifel also noted the anticipated production ramp-up of Tesla’s lower-priced vehicle in the latter half of 2025.

Meanwhile, Tesla’s Full Self-Driving (FSD) system has shown impressive performance in a recent real-world highway test in China. The test, organized by Dcar and CCTV, put Tesla’s ADAS to the test against competitors like BYD, Huawei, Xpeng, and Xiaomi. Tesla’s Model 3 and Model X outperformed their rivals, passing five out of six tests, including a challenging wild boar scenario. Elon Musk credited the company’s in-house simulation tools and test tracks for the impressive results, as Tesla had no access to local Chinese driving data [2].

RBC analyst Tom Narayan reaffirmed his Outperform rating on Tesla stock, highlighting the company’s long-term upside in its future bets: robotaxis, Full Self-Driving, and humanoid robots. Narayan estimates the robotaxi business alone could generate nearly $190 billion in annual revenue by 2040.

References
[1] https://www.investing.com/news/analyst-ratings/tesla-price-target-raised-to-325-from-319-at-rbc-capital-on-robotaxi-progress-93CH-4156417
[2] https://supercarblondie.com/tesla-full-self-driving-outperforms-china-rivals/