Tesla in the Robotaxi Market
Tesla launched a limited robotaxi service in Austin, Texas, in June 2025. This service is based on an enhanced version of the Full Self-Driving (FSD) software and differs from competitors by exclusively using camera-based sensors and AI-based neural networks, without employing additional sensors such as LiDAR or radar. The launch is controlled with a safety monitor in the passenger seat and an unoccupied driver’s seat in selected neighborhoods.
Market Potential and Valuation
Investment bank UBS has raised the price target for Tesla’s stock from $190 to $215 due to the robotaxi potential. UBS forecasts that Tesla could develop a fleet of about 2.3 million robotaxis by 2040. This fleet has the potential to generate approximately $200 billion in revenue, provided Tesla successfully overcomes the technological challenges and regulatory hurdles.
UBS values this robotaxi opportunity at about $99 per share and now considers this a significant component of the company’s overall valuation.
Importance for Investors
- Tesla’s entry into the robotaxi market marks a significant advancement in autonomous vehicles.
- The growth potential in the area of autonomous ride services is considered enormous.
- The development of its own scalable autonomous ride service can generate high revenues in the long term.
- Tesla’s approach with camera-based AI technology distinguishes the company technologically.
For investors, this represents an attractive opportunity to participate in a promising market segment with potentially high profits.
In summary, the robotaxi market is a rapidly growing segment within electromobility and autonomous vehicles. Tesla plays a pioneering role here – both technologically and in terms of market introduction – which makes the stock interesting from the perspective of some analysts despite high valuations.