Tesla's Robotaxi Launch Looms as Trump-Musk Feud Cools Off, Wedbush Says
Tesla's Robotaxi launch in Austin is anticipated this week, although Wedbush Securities notes the timing is not ideal. The firm suggests that the feud between Elon Musk and Donald Trump is easing, which could benefit Tesla's initiatives. They estimate the AI and autonomous opportunity for Tesla is worth at least $1 trillion and expect Robotaxi deployment in 20 to 25 US cities within the year. Wedbush maintains an outperform rating on Tesla with a $500 price target, as shares rose 0.3% recently.
Tesla's timing for the anticipated Robotaxi launch in Austin, Texas, this week "in not ideal," though Chief Executive Officer Elon Musk's feud with President Donald Trump "is not getting in the way, Wedbush Securities said Monday in a note.
"It would not be a surprise to see Trump and Musk slowly mend the fences." Wedbush said. "Musk needs Trump for many reasons including a green light on a federal framework for autonomous."
"We estimate the AI and autonomous opportunity is worth at least $1 trillion alone for Tesla and we fully expect under a Trump White House, these key initiatives will get fast-tracked," Wedbush said.
"We believe over the coming year we will see Robotaxi deployed in 20 to 25 cities in the US" after the rollout expected in Austin on Thursday, Wedbush said.
Wedbush maintained its outperform rating on Tesla's stock with a $500 price target.
Tesla shares rose 0.3% in recent trading Monday, erasing earlier losses.