Tesla (TSLA) shares are in the spotlight as the company officially kicks off its long-awaited robotaxi era. Notably, TD Cowen analyst Itay Michaeli reiterated his Buy rating on Tesla stock, citing a “pretty impressive” rollout of the autonomous ride-hailing service in Austin. While the launch remains limited, the firm sees it as a meaningful step toward Tesla’s long-term vision and a potential new growth catalyst.
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For context, Tesla officially launched its robotaxi service in Austin on Sunday with around 10 vehicles, each monitored by human supervisors as regulatory scrutiny over its self-driving technology persists. Since the launch, TSLA stock has climbed more than 5%.
Here’s Why TD Cowen is Bullish on TSLA
TD Cowen described Tesla’s first day of robotaxi operations as a success, noting that certain aspects exceeded expectations, particularly in terms of the service area and pickup/drop-off precision.
Meanwhile, Michaeli pointed out that Tesla’s initial operating zone in Austin was larger than anticipated, though still smaller than Alphabet’s (GOOGL) Waymo’s current coverage. He also highlighted Tesla’s user interface as being notably polished for such an early-stage ride-hailing rollout.
The investment firm was especially impressed by the vehicle’s ability to accurately pick up and drop off passengers, even within parking lots. This is often difficult for autonomous systems in their early phases. Importantly, TD Cowen pointed out that no major safety or performance issues were observed, further supporting its bullish outlook on Tesla’s self-driving ambitions.
Is Tesla a Buy, Hold, or Sell?
Tesla’s robotaxi launch marks a significant milestone in its shift from electric vehicles to AI-driven mobility. The rollout has the potential to unlock substantial new revenue streams and redefine the company’s long-term growth trajectory. However, regulatory and execution risks remain high, making the next few weeks pivotal. At the same time, analyst sentiment on TSLA stock remains divided.
According to TipRanks, TSLA stock has received a Hold consensus rating, with 14 Buys, 12 Holds, and nine Sells assigned in the last three months. The average Tesla stock price target is $287, suggesting a potential downside of nearly 16% from the current level.
