Electric vehicle giant Tesla (TSLA) has officially started production on its Cybercab line, noted a recent report. The Cybercab is unique in that it is perhaps the first true effort in full self-driving, as opposed to full self-driving with a human supervisor. Though in some cases, reports note, even the Cybercabs have some kind of human supervision. The news was welcome to investors, though, and shares ticked up modestly in Friday’s trading.
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Forget margin or options. Here's how the pros trade TSLAThe Cybercab is particularly unique in that the ability for humans to supervise its operations is somewhat limited. Cybercabs have neither steering wheels nor foot pedals, a point which actually requires certain exemptions from United States regulators to allow them to be produced. The lack of steering or foot controls will help make Cybercabs cheaper than other Tesla models, though there is no word as yet on what they cost.
One thing is clear, though. The launch of production will take quite some time to mean much to Tesla, or to its investors. Tesla maintains that Cybercab will not see material revenue until some time in 2027 at the earliest. With a handful of cities ready for Cybercab operations, it remains to be seen just how much Tesla even can realize from this project.
Big Profit Vector at Risk
Meanwhile, Tesla also faced a serious problem as one of its biggest pure-profit operations was about to dwindle to nothingness. Tesla has long made a big chunk of its net income by selling automotive regulatory credits to its competitors. It needs much fewer of these than you might think, since it deals mainly in electric vehicles. But these days are coming to an end.
The One Big Beautiful Bill Act hit zero-emission vehicle credit (ZEV) credits, effectively eliminating them for the most part. While Tesla’s sales had been on the decline for some time—from $590 million in the first quarter of 2025 to $380 million in the first quarter of 2026—the trade is on the verge of utter loss.
Is Tesla a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 12 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. After a 31.15% rally in its share price over the past year, the average TSLA price target of $412.91 per share implies 10.56% upside potential.
