From Nasdaq: 2025-06-05 09:26:00

Tesla is gearing up to launch its robotaxi services, with the buzz around it causing a surge in stock prices. Despite Cathie Wood selling some Tesla shares, ARK Innovation ETF remains optimistic about Tesla’s future in the robotaxi business, projecting a $2,600 price target by 2029.

As Tesla prepares to roll out its robotaxi service, it faces tough competition from Alphabet’s Waymo and other players already dominating the market. Tesla’s recent tests in Austin show progress, but it still lags behind in commercial services and reliability compared to its competitors.

While Tesla hypes its robotaxi future, its core EV business faces challenges with declining sales and increased competition. The company’s valuation appears richly priced, reflecting optimism around its robotaxi ambitions, despite uncertainties in the venture’s success.

Investors should be cautious about Tesla’s high valuation and potential risks in the evolving EV and robotaxi markets. While the long-term vision is bold, execution remains a key factor in determining Tesla’s success. With increasing competition and declining core EV sales, the risk-reward balance may not be favorable at the moment.



Read more at Nasdaq: Cathie Wood Trims TSLA Stake Before Robotaxi Day: Should You Too?