Tesla’s (TSLA) highly anticipated robotaxi service officially hit the streets of Austin, but Wall Street’s reaction has been mixed. Notably, Guggenheim analyst Ronald Jewsikow has maintained a Sell rating on TSLA stock, describing the launch as a “relatively uneventful Sunday in Austin, and uneventful is a good outcome.” Jewsikow kept his price target steady at $175, implying a nearly 50% downside from current levels.
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TSLA Stock Rallies After Robotaxi Debut
TSLA stock gained traction after the robotaxi launch, jumping more than 8% on Monday as investor enthusiasm outweighed the cautious analyst stance. Overall, the stock has gained more than 50% from its low point in April, fueled by investor optimism that the robotaxi rollout could reignite Tesla’s growth.
For context, Tesla officially launched its robotaxi service in Austin on Sunday, deploying around 10 vehicles—each under human supervision. Despite the buzz, Tesla’s robotaxi debut was subdued, featuring safety monitors in the passenger seat and limited access for social media influencers. The cautious launch coincides with ongoing NHTSA investigations into the company’s Autopilot and Full Self-Driving claims.
Guggenheim Views on Robotaxi Launch
In a note published Monday, he said that influencer-shared videos showed “almost entirely clean driving performance.” Despite the modest praise, Guggenheim remains cautious on the valuation issues of TSLA stock.
Last week, Jewsikow emphasized that Tesla’s fundamentals are “deteriorating at an alarming rate,” adding that recent gains in the stock are being driven more by the robotaxi launch in Austin and political narratives than by core business performance. Overall, he expressed concern that market expectations for Tesla in 2025 and 2026 are too high, noting that bullish drivers for the automotive segment are increasingly being challenged.
Is Tesla a Good Share to Buy?
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 share price target is $287.0, suggesting a potential downside of over 17% from the current level.
