William Blair analyst Jed Dorsheimer has maintained their bullish stance on TSLA stock, giving a Buy rating on June 27.
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Jed Dorsheimer has given his Buy rating due to a combination of factors that highlight Tesla’s potential in the autonomous driving sector. The successful launch of Tesla’s robotaxi service in Austin marks a significant transition for the company from a traditional automaker to a leader in AI and autonomous driving technologies. This shift opens up a substantial market opportunity, with a projected trillion-dollar total addressable market (TAM) for robotaxis. Despite the challenges facing Tesla’s core automotive business, such as reduced delivery estimates and competitive pressures, the momentum from the robotaxi initiative provides a strong counterbalance.
Furthermore, Dorsheimer’s analysis suggests that Tesla’s ability to leverage its cost structure and offer competitive pricing in the robotaxi market could lead to substantial revenue growth. By 2040, Tesla is expected to capture a significant market share, generating considerable revenue and achieving high EBITDA margins. The valuation of Tesla’s robotaxi business alone is estimated to contribute significantly to the company’s overall value, reinforcing the Buy rating despite current market headwinds.
In another report released on June 27, TD Cowen also maintained a Buy rating on the stock with a $330.00 price target.