Tesla’s (TSLA) autonomous technology has long been a backbone of Elon Musk‘s vision for the future of transportation. Meanwhile, investors are increasingly focused on its potential impact on TSLA stock price amid advancements in AI and the promise of a robust autonomous vehicle network. As the company advances its full self-driving (FSD) technology, many analysts are viewing autonomy not just as a bold vision but as a growth catalyst for the company.
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Although it’s not fully autonomous, Tesla’s FSD system includes advanced driving assistance, such as recognizing traffic lights and stop signs, autosteer on city streets, and navigation on autopilot. In recent months, Tesla announced plans to launch an “unsupervised” version of its FSD system this year, potentially allowing vehicles to operate without human oversight. This technology is expected to power Tesla’s highly anticipated robotaxi service, which is set to debut in Austin, Texas, in June 2025.
Analysts Bullish on Tesla’s Autonomous Tech
Last week, five-star-rated analyst Mark Delaney Goldman Sachs maintained its Hold rating on TSLA stock.
Delaney views that the success of Tesla’s FSD technology will largely depend on its ability to improve both the level of technology and the associated costs. He added that achieving significant advancements in these areas, especially compared to its competitors, will be crucial for Tesla’s long-term financial outlook in the autonomous driving sector. If Tesla can make its FSD more efficient and affordable, it could solidify its position as a leader in the market, driving future growth and profitability.
Meanwhile, top-rated analyst Alexander Potter from Piper Sandler maintained his Buy rating on TSLA stock last week, while keeping an attractive price target of $400. According to Potter, Tesla’s FSD software is the biggest reason behind this optimistic price target. However, after the discussion, Piper believes Tesla’s current FSD Version 13 still isn’t capable of fully driving the car without human help. The firm also notes that it’s been about 4.5 months since Version 13 was released, and no major updates have come out since then. Piper thinks Tesla may have been using this time to carefully prepare for a safe rollout of the software in Austin.
Is Tesla a Good Stock to Buy Right Now?
On Wall Street, analysts have maintained a neutral stance on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 16 Buys, 10 Holds, and 11 Sells assigned in the last three months. The average Tesla stock price target is $284.23, suggesting a potential downside of 4.7% from the current level.
Year-to-date, TSLA stock has declined by 26%.
