Tesla stock trading at a 'fraction' of its market potential: CFRA Research
02/19/2025 05:25 AM
CFRA Research analyst Garrett Nelson claims that Tesla (NASDAQ:TSLA) stock is trading at a fraction of its market potential. Nelson believes Tesla’s robotaxi business will drive the stock to higher heights.
"We remain bullish on Tesla, Inc. because we're optimistic as far as regulatory approvals and getting a regulatory framework related to autonomous driving in the United States.
“I think that will come sooner rather than later. It became clear after Tesla Robotaxi Day back in October that the story was all about autonomous driving going forward, and you look at the value of the company in our view, it's still trading at a fraction of the market opportunity here, which we estimate to be, you know, north of $5 trillion, if you look at the global autonomous driving opportunity. So, you know, we're buyers on this dip that we've seen in the stock this week,” commented Nelson while on Schwab Network.
Would you rather:
— TESLARATI (@Teslarati) October 27, 2024
-Be the first to take delivery of the Tesla Robotaxi
OR
-Be the first human to travel in Starship to Mars
Let us know down there pic.twitter.com/Po3V0UKiQo
Morgan Stanley analysts agree with Nelson and CFRA Research. Last month, Morgan Stanely forecasted an $800 bull case scenario for Tesla based on the potential of its robotaxi business.
Tesla expects to launch robotaxi–with unsupervised self-driving– paid services in Austin by June 2025. During the Full Year and Q4 2024 Earnings Call, Elon Musk predicted that robotaxi services would be available across multiple cities in the United States by the end of this year.
However, not all Tesla analysts believe the robotaxi fleet will benefit the company’s business. Gary Black predicts that less than 50% of Tesla owners will join the fleet. He argued that Tesla owners would be against including a personal vehicle in a publicly-used fleet.
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