Investing.com -- Tesla is officially entering what Wedbush calls “the golden era of autonomous” with the launch of its robotaxi service in Austin this Sunday, a milestone the firm believes could eventually add $1 trillion to Tesla’s valuation.
In a note on Friday, Wedbush said the service will begin with around 20 Model Y vehicles operating in a geofenced area around Austin, with plans to scale to “roughly 25 cities in the U.S. over the next year.”
Analysts described the event as a “foundation of autonomous growth for years to come” and called it “one of the most important” chapters in Tesla’s history.
“We believe the AI future at Tesla (NASDAQ:TSLA) is worth $1 trillion to the valuation alone over the next few years,” Wedbush wrote. The firm reiterated its Outperform rating and $500 price target, citing Tesla’s unmatched global scale in AI and autonomy.
Wedbush also sees regulatory tailwinds under a Trump presidency, predicting that federal oversight will soon simplify approval for full self-driving technologies.
“Trump wants the U.S. to stay ahead of China in this AI Arms Race,” the analysts said, adding that autonomous technology “is a key factor in who wins AI… with Tesla playing a major role on robotaxis.”
The launch marks only the beginning, according to Wedbush. “Rome was not built in a day… and neither will Tesla’s autonomous and robotics strategic vision,” they said.
Full-scale production of Tesla’s purpose-built robotaxi, the Cybercab, is expected to start next year.
Wedbush concluded, “We believe Tesla could reach a $2 trillion market cap by the end of 2026 in a bull case scenario.”
