Tesla price target raised to $215 from $190 at UBS on robotaxi potential

Investing.com - UBS raised its price target on Tesla (NASDAQ:TSLA) stock to $215 from $190 on Monday while maintaining its Sell rating, citing the company’s robotaxi opportunity. The electric vehicle giant, currently valued at $1.14 trillion, trades at a P/E ratio of 181, and according to InvestingPro analysis, appears overvalued at current levels.

The price target increase follows Tesla’s launch of its first robotaxi service in Austin, which has heightened investor focus on the autonomous ride-hailing market potential for the electric vehicle maker.

UBS projects that Tesla could develop a robotaxi fleet of approximately 2.3 million vehicles by 2040, potentially generating around $200 billion in revenue if the company successfully navigates technological, regulatory, and network-building challenges.

The investment firm values Tesla’s robotaxi opportunity at approximately $99 per share, which UBS has now incorporated into its overall valuation model for the company.

Despite the increased price target, UBS remains cautious on Tesla’s overall valuation, maintaining its Sell rating as it believes the autonomous ride-hailing opportunity is already priced into the stock.

In other recent news, Tesla has begun a limited robotaxi service in Austin, Texas, marking a significant step in its autonomous vehicle ambitions. The trial involves a small fleet of Model Y SUVs equipped with full self-driving software, monitored by human employees for safety. CEO Elon Musk emphasized the importance of safety during this initial phase and expressed intentions to scale the service rapidly. Meanwhile, Tesla is also making strides in international markets, preparing to open its first showrooms in India, starting with locations in Mumbai and New Delhi. This move follows the shipment of Model Y SUVs from China and signifies Tesla’s formal entry into the Indian automobile market. The company has imported necessary components and accessories to support this expansion. On the financial front, Barclays (LON:BARC) has maintained its Equalweight rating on Tesla, noting the robotaxi launch as a critical milestone but advising caution against overoptimism. The focus remains on Tesla’s autonomous technology as the company navigates challenges in other regions.

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