Tesla Inc (NASDAQ:TSLA) has begun testing robotaxis in Austin without a safety monitor driver. Here’s what this could mean for the company and stock going forward, according to one analyst.
The Tesla Analyst: Goldman Sachs analyst Mark Delaney maintained a Neutral rating on Tesla with a price target of $400. The analyst previously lowered the price target from $425 to $400 after third-quarter financial results.
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The Analyst Takeaways: Reports that Tesla is testing robotaxi rides in Austin without a safety monitor follow the company’s previous timeline for completing this by the end of 2025, Delaney said in a new investor note.
“We believe that removing the monitor for testing shows that Tesla is making progress with its autonomous technology,” Delaney said.
The analyst said Tesla’s previous commentary was to have its robotaxi service in eight to 10 metros by the end of 2025.
“We think the key focus from here will be how fast Tesla can scale driverless operations and on profitability.”
Delaney said a key could be seeing if Tesla’s approach to software and hardware allow the company to scale faster than competitors like Uber Technologies (NYSE:UBER), Lyft Inc (NASDAQ:LYFT), Waymo and Pony AI (NASDAQ:PONY).
The new investor note said Uber expects to have autonomous vehicles in 10 cities or more by the end of 2026 and Waymo is already operating in several cities with more planned.
The analyst expects the U.S. rideshare market for autonomous vehicles to reach $7 billion in 2030.
As a positive catalyst for the analyst, Delaney highlights Tesla’s improving FSD software.
“We also believe Tesla is making progress with its autonomy software for consumer vehicles.”
The analyst said reviews indicate that FSD is well received.
“We expect autonomous tech and AVs to be a key driver of Tesla’s future profits. We continue to expect autonomy (both FSD and robotaxis) to be key drivers of Tesla’s growth.”
TSLA Price Action: Tesla stock is up 0.4% to $477.04 on Tuesday versus a 52-week trading range of $214.25 to $488.54. Tesla shares are up 25.8% year-to-date in 2025.
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