Tesla price target raised to $325 from $319 at RBC Capital on robotaxi progress

Published 29/07/2025, 06:58
© Reuters

Investing.com - RBC Capital has raised its price target on Tesla (NASDAQ:TSLA) to $325 from $319 while maintaining an Outperform rating on the stock. The target aligns closely with Tesla’s current trading price of $325.59, though analyst targets range widely from $115 to $500, according to InvestingPro data.

The firm cited the better-than-feared Austin robotaxi launch as a key factor in its decision to increase the target price, noting that Tesla is now looking to expand the service to additional cities.

RBC Capital acknowledged that regulatory hurdles remain for Tesla’s autonomous vehicle ambitions, which could impact the pace of the robotaxi rollout across different markets.

The investment bank expressed caution about Tesla’s traditional automotive business, expecting pressure in the coming quarters due to the end of Inflation Reduction Act (IRA) credits.

High levels of used electric vehicle inventory were also highlighted as a near-term challenge for Tesla’s auto business performance over the next several quarters.

In other recent news, Tesla has been making significant strides with its robotaxi service. The company began operating its service in Austin, Texas, with unsupervised Model Y vehicles, and plans to expand to the Bay Area, including San Francisco, as early as this weekend. Select Tesla owners are expected to receive invitations to participate in the service, which will require a fee for rides. Cantor Fitzgerald has reiterated an Overweight rating on Tesla, maintaining a price target of $355, citing the expansion of the robotaxi service as a key factor. Additionally, Stifel has reiterated its Buy rating with a price target of $450, highlighting Tesla’s successful launch and expansion of its robotaxi service in Austin. Stifel also noted the anticipated production ramp-up of Tesla’s lower-priced vehicle in the latter half of 2025. Meanwhile, Neuralink, another company led by Elon Musk, has joined a University of California study to develop an AI-powered bionic eye. This study aims to create a device that could assist blind individuals in identifying faces and navigating their surroundings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.