Why Tesla’s robotaxi stumble is a win for Lyft

Published 08/07/2025, 14:56
© Reuters.

Investing.com -- Oppenheimer analysts told investors in a note Tuesday that Tesla’s limited robotaxi rollout has removed a key overhang for Lyft (NASDAQ:LYFT), helping clear the path for potential multiple expansion in the stock. 

The firm raised its price target on Lyft shares to $20 from $17, citing improved investor sentiment and stable rideshare demand.

“With TSLA’s limited Robotaxi launch in Austin disappointing investors and passengers reporting safety concerns, the bear thesis that robotaxi will subvert rideshare marketplace demand has been firmly halted,” Oppenheimer wrote.

The analysts argued that Lyft is now “past the near/medium-term robotaxi headwind,” allowing for valuation upside. The firm’s new target implies a 12x multiple on projected 2026 EBITDA, which it notes is “a 27% discount to peers or 24% discount to UBER.”

Oppenheimer also pointed to a stable industry backdrop: “Consumer demand and the competitive outlook remains unchanged since earnings, suggesting a healthy 2Q/2H backdrop for rideshare.”

They added that while year-over-year growth for TSA passengers was -1% in June and -2% in May after being flat the prior three months, growth has been steady throughout 2025 on a two-year stack.

This environment could support further upward revisions to estimates. “We see upside to estimates with consensus’ 12% gross bookings CAGR through 2027 well below LYFT’s 15% target,” the analysts added.

Overall, Oppenheimer believes that “US rideshare penetration remains low and therefore supportive of multiple marketplaces generating sustained double-digit growth.”

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