The analyst reportedly projected Tesla could capture 35% of the 1.1 trillion annual rideshare miles expected by 2040, generating nearly $250 billion in revenue.
William Blair on Tuesday kept a ‘Market Perform’ rating on Tesla Inc. (TSLA) after trying out the company’s robotaxi service in Austin before its public launch in September.
Unlike Waymo and Zoox vehicles, which are outfitted with a complex sensor suite “that stick out like a sore thumb,” Tesla’s autonomous vehicles blended in with all the other Teslas on the road, the analyst told investors in a research note.
The service costs about half of Uber’s fares and runs on tech roughly one-tenth the cost of Waymo’s, giving Tesla a major edge in scaling, Blair said, according to Investing.com. On Stocktwits, retail sentiment around Tesla fell from ‘bullish’ to ‘neutral’ territory over the past 24 hours, while message volume stayed at ‘low’ levels. According to Stocktwits data, retail chatter around Tesla rose 229% over the past 24 hours but fell 49% over the past seven days.
The analyst projected Tesla could capture 35% of the 1.1 trillion annual rideshare miles expected by 2040, generating nearly $250 billion in revenue with nearly 60% earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins, the report said. The analyst valued Tesla’s robotaxi segment at $298.61/share, bringing the total fair value to $357.43/share, it added.
The robotaxi “felt like a more luxurious service for half the cost and the driving felt more human-like,” the firm contended. It remains enthusiastic about the robotaxi launch but noted that Tesla is facing a period of margin headwinds from pending regulatory cuts, as per TheFly. Shares of the EV giant traded 1% lower at the time of writing.
A Stocktwits user opined that the stock has the “most bizarre price action.”
TSLA stock is down by 18% this year but up by about 49% over the past 12 months.
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