EV maker Tesla (TSLA) is getting ready to launch its robotaxi service in San Francisco as early as this weekend, according to Business Insider, which cited internal staff memos. The rollout would be Tesla’s first large-scale test of the service and will cover a wide geofenced area that includes Marin, the East Bay, San Francisco, and stretches south to San Jose. Earlier this year, Tesla tested the service in a limited capacity in Austin, Texas. However, this launch will be a much bigger step toward its goal of fully autonomous ride-hailing.
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It is worth noting that during Tesla’s recent earnings call, CEO Elon Musk said that the first phase of the Bay Area launch will still include safety drivers in the front seat in order to monitor the system. He also stated that Tesla is working to expand the service into other states, such as Nevada, Arizona, and Florida, and believes that robotaxis could have a significant impact on the company’s overall business by the end of the year.
Nevertheless, even with the upcoming launch, Tesla still faces major regulatory challenges. Indeed, the California Department of Motor Vehicles confirmed it has met with Tesla but said that the company hasn’t yet applied for the required permits to test or charge for fully autonomous rides. The California Public Utilities Commission must also approve these services before they can be expanded. As a result, gaining these approvals will be crucial for Tesla to meet Musk’s aggressive goal of reaching half of the U.S. population by the end of the year.
What Is the Prediction for Tesla Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 14 Holds, and six Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $314.48 per share implies 0.3% downside risk.
