Truist holds Tesla stock at $280 target, sees Robotaxi as catalyst

Published 24/05/2025, 12:34
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On Friday, Truist Securities maintained a Hold rating on Tesla (NASDAQ:TSLA) shares with a consistent price target of $280.00. Currently trading at $339.34, Tesla has shown significant price volatility, with a 52-week range of $167.41 to $488.54. According to InvestingPro data, analyst targets for the stock range from $115 to $500, reflecting diverse market opinions on this prominent $1.09 trillion market cap automaker. The firm’s analyst, William Stein, provided insights into the potential impact of Tesla’s forthcoming Robotaxi service on the company’s stock value. Stein’s analysis is based on his experiences with Tesla’s Full Self-Driving (FSD) technology and a recent test ride with Waymo’s autonomous vehicle service. With revenue of $95.72 billion in the last twelve months and a high P/E ratio of 178.75, Tesla’s valuation reflects significant growth expectations. InvestingPro analysis reveals 20 key insights about Tesla’s financial health and market position, available to subscribers.

Stein’s comments suggest that while he found Waymo’s technology to be impressive, it was not without flaws. He anticipates that Tesla’s Robotaxi service, which is set to launch in June in Austin, will also have its imperfections. Despite these expected shortcomings, Stein believes that the introduction of the Robotaxi service, even on a small scale, could act as a positive driver for Tesla’s stock.

The analyst’s perspective on Tesla’s FSD and Robotaxi services is informed by his test drives of Tesla’s FSD in January 2025 and August 2024, as well as his recent experience with Waymo’s service during a trip from the Phoenix airport to a hotel located 24 miles away. His comparative analysis of the two services leads him to conclude that while both technologies are advanced, they are not without their respective challenges.

Stein’s reiteration of the Hold rating and $280.00 price target comes as Tesla prepares to introduce its Robotaxi service to the public. His comments highlight the anticipation surrounding the service’s debut and its potential influence on investor sentiment towards Tesla’s stock.

Investors and industry observers are closely watching the developments in autonomous vehicle technology, with companies like Tesla and Waymo at the forefront. The upcoming launch of Tesla’s Robotaxi service is a significant milestone for the company and the broader sector, marking another step towards the future of transportation. Tesla maintains a strong financial health score of "GOOD" according to InvestingPro, which offers comprehensive analysis through its Pro Research Report, helping investors make informed decisions about this innovative automaker’s future prospects.

In other recent news, cryptocurrency exchange Kraken has announced plans to offer tokenized equities for non-U.S. customers, allowing them to trade shares of companies like Apple (NASDAQ:AAPL), Tesla, and Nvidia (NASDAQ:NVDA) as digital tokens. This initiative aims to simplify access to U.S. stocks for international investors, providing 24/7 trading opportunities. The service will initially be available to customers in regions such as Europe, Latin America, Africa, and Asia, while U.S. customers will not have access due to regulatory constraints. Meanwhile, Tesla has been the focus of several analyst reports, with Piper Sandler maintaining an Overweight rating and a $400 price target, citing the anticipated launch of a robo-taxi service in Austin, Texas, as a key point of interest. Morgan Stanley (NYSE:MS) also reiterated its Overweight rating on Tesla, with a $410 price target, emphasizing Tesla’s role in the broader economic ecosystem known as the "Muskonomy." The firm highlighted competitive pressures from Chinese EV manufacturers, particularly Xiaomi (OTC:XIACF), which could impact Tesla’s market position. Both analyst firms underline the potential for Tesla’s continued growth and innovation in the industry. These recent developments highlight the evolving landscape of both traditional and digital financial markets.

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

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