Tesla Stock Defies Robotaxi Scrutiny
Tesla (TSLA) shares continued their upward trajectory in early trading Tuesday, adding about 2% in the premarket session. This extended a significant 8% surge seen on Monday, June 24. The positive momentum for the electric vehicle and technology giant occurred even as its newly launched robotaxi service faced scrutiny from U.S. regulators following reports of potential traffic violations.
The focus of this regulatory attention stems from the robotaxis’ initial day of commercial service in Austin, Texas.
NHTSA Launches Safety Probe
The U.S. National Highway Traffic Safety Administration (NHTSA) has confirmed it is reviewing reports related to Tesla’s autonomous vehicles allegedly breaking traffic laws during this debut. According to a Tuesday press release from the agency, concerns include footage shared online that appears to show the robotaxis exceeding speed limits and veering into incorrect lanes.
NHTSA stated it is actively communicating with Tesla to gather further details regarding these incidents. The agency reiterated its standard procedure, emphasizing that it does not provide pre-certification for vehicle systems but initiates investigations when safety concerns are raised, as is the case here.
Tesla’s Robotaxi Rollout and Technology
Tesla officially initiated its paid robotaxi service on Sunday, utilizing modified Model Y vehicles equipped with the company’s Full Self-Driving (FSD) software. A key technical distinction highlighted is Tesla’s reliance solely on an AI-powered camera system for its autonomous navigation, unlike some other companies in the field that incorporate Lidar or radar technology. The recent rollout represents Tesla’s first limited, real-world deployment of a fully autonomous ride-hailing service, a key piece of Tesla’s long-term strategy.
Investor Focus vs. Regulatory Headwinds
Despite the surfacing safety concerns and the regulatory spotlight from NHTSA, investor reaction appeared to remain optimistic. The market seemingly prioritized the significant long-term potential associated with Tesla’s ambitious self-driving goals and its push into the burgeoning robotaxi market.
While this launch could potentially accelerate Tesla’s strategic expansion in autonomous mobility, the article notes that regulatory risks are likely to persist as a key factor potentially weighing on the stock’s performance moving forward.
Analyst Outlook and Valuation
Providing additional financial context, analyst sentiment on TSLA stock presents a mixed picture looking ahead. Based on price targets from 43 analysts covering the stock over a one-year horizon, the average target price is $289.30. This average falls below the stock’s current price of $322.16, implying a potential downside of 10.20%. Individual analyst targets varied widely, from a high of $500.00 to a low of $19.05.
Furthermore, GuruFocus estimates the stock’s GF Value in one year at $267.12, suggesting an even larger potential downside of 17.08% from the current price. These valuation metrics suggest a significant disconnect between the stock’s recent positive trading momentum and analysts’ more cautious outlook based on fundamental valuation models.
