Tesla (TSLA) Just Took a Major Step Toward Driverless Rides—But Is Wall Street Convinced?

Tesla, Inc. (NASDAQ:TSLA) is one of the 10 Trending AI Stocks on Wall Street Right NowOn June 23, Barclays analyst Dan Levy reiterated an “Equal Weight” rating on the stock with a $275.00 price target.  The firm quoted Tesla’s robotaxi service debut held in Austin to be “rather uneventful with no major issues.”

“Tesla’s Robotaxi launch in Austin, Texas was rather uneventful with no major issues, and in our opinion largely inline with expectations. Tesla ran a small driverless fleet in a geofenced area, with access only given to a limited number of users.

Yet zooming out, we believe the launch is a matter of perspective. Bulls will point to yesterday’s event as the start of a new era for Tesla, one which bulls and believers have been awaiting for a long time. They see the tech working well with a clear path of scaling, and point to Tesla now generating revenue on driverless rides as a critical milestone. Bulls will point to yesterday’s event as just the beginning of an exciting path of growth.”

Tesla (TSLA) Just Took a Major Step Toward Driverless Rides—But Is Wall Street Convinced?

“We appreciate this view, and believe this further reinforces that Robotaxi/AV remains front and center for the stock…with fundamentals seemingly pushed to the side for now (albeit we believe fundamentals don’t matter until they matter). But we believe the much better question ahead is on the path of scaling, which we believe will be long, and we caution against over optimism.”

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.

While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.