Tesla’s (TSLA) new robo taxi service in Austin just got a stamp of approval from William Blair analyst Jed Dorsheimer. He tested the service and came back impressed. His reaction was summed up in four words: “Wow, everything’s computer.” The line, originally made famous when President Donald Trump praised Tesla’s technology, captures the surprise of seeing a system that relies only on cameras actually work smoothly.
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What sets Tesla apart is its refusal to use expensive sensors like lidar, which competitors Waymo and Zoox depend on. Tesla instead bets on cameras and its Full Self Driving software. Dorsheimer said the ride quality felt more natural and human-like compared with rivals, and the cost was about half that of a Waymo ride. This combination of comfort and savings could give Tesla a powerful edge if it can scale.
Tesla Challenges Sensor-Heavy Rivals like Waymo & Zoox
The difference in technology is visible on the road. Waymo and Zoox vehicles are packed with sensors, towers, and radar systems that make them instantly recognizable. Tesla’s cars, on the other hand, look like any other Model Y or Model 3, but run on a software system that does the heavy lifting. Dorsheimer called the contrast “immediate and stark” after watching the two approaches side by side.
Waymo still holds the lead in terms of rides completed. The company handles more than 250,000 fully autonomous trips per week, a figure that dwarfs Tesla’s early pilot program. But Tesla’s bet is that simpler hardware and software that improves quickly will eventually overtake the slower, more expensive sensor-heavy competitors. The Austin launch is the first real-world test of whether that theory can hold.
Analyst Assigns Enormous Value
Dorsheimer believes Tesla’s robo taxi business could be worth nearly $300 per share, or more than $900 billion in value on its own. His sum-of-the-parts analysis, which includes Tesla’s cars, energy storage, and mobility services, values the stock at about $360 per share overall.
Even with that bullish math, he keeps Tesla rated Hold instead of Buy. That shows how early this still is. The opportunity is massive, but the risks are just as high. The business must prove it can scale safely and profitably before investors reward it fully.
Tesla Stock Moves Sideways
Tesla stock has already gained from the robo taxi story. Since the company’s October 2024 event in Hollywood, shares are up about 40%, adding more than $300 billion in market value. But since the June 2025 launch in Austin, the stock has risen only about 4%, showing investors are waiting for more evidence before moving further.
On Tuesday morning, Tesla stock slipped 0.1% to $334.87. The S&P 500 (SPY) and Dow Jones Industrial Average were flat. Shares have been drifting in recent weeks as traders weigh Tesla’s long-term promise against the short-term uncertainty of scaling robo taxis.
Is Tesla a Buy, Hold, or Sell?
Tesla stock continues to divide Wall Street. Over the past three months, 37 analysts have issued ratings: 14 Buys, 15 Holds, and eight Sells. The majority view is Hold, showing that analysts are cautious about where the stock goes next.
The average 12-month TSLA price target is $307.23, which suggests about an 8.3% downside from the current price of $335.16.
