RBC Capital raised its price target for Tesla ahead of its Robotaxi event on October 10.
RBC Capital analysts increased TSLA’s price target from $224 to $236 and maintained the electric vehicle (EV) maker’s Outperform rating ahead of the Robotaxi event.
Tesla is expected to unveil the Cybercab, the highly-anticipated robotaxi vehicle, on October 10. Tesla’s Cybercab will be the backbone of the company’s upcoming ride-hailing services.
“For the first time, it will highlight a business that represents $153 billion of revenue of Tesla, 63% of our valuation,” commented RBC analysts.
Tesla’s robotaxi services are forecasted to generate $1.7 trillion in global revenues by 2040. RBC Capital believes Tesla’s robotaxi market will be competitive with other ride-hailing services. The Cybercab fleet and services will compete with veterans like Uber.
Morgan Stanley analyst Adam Jonas predicts Tesla will unveil the Cybercab and the long-awaited Model 2, the company’s sub-$30,000 EV, during the October 10 event. Jonas has an Overweight rating and a $310 price target for TSLA before the robotaxi unveiling.
“It is our expectation that Tesla will offer a ‘dual’ approach with respect to autonomous ridesharing: (1) the fully autonomous app-based cybercab and (2) a ‘supervised’ autonomous/FSD rideshare service. We think the latter of these may get the most attention or have the greatest room to surprise investors, at least near term,” wrote Adam Jonas in a recent note.
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