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Tesla received a price target (PT) hike to $305 from RBC. The firm believes in the future of robotaxi, made from the company’s new-gen cars, which will help margin recovery.
Canadian bank RBC raised Tesla’s price target from $212 to $305 and left the rating at the “outperforming” level. Analyst Tom Narayan wrote that the firm believes in the future of robotaxi. He now includes autonomous driving developed by the manufacturer as a separate business.
Narayan wrote that margin dilution should be offset by cheaper models that Tesla plans to release after Giga Mexico finishes construction. Thanks to Tesla’s industry-leading autonomous driving software, a huge number of owners will install it on their cars, which can work like a robotaxi. This is what Tesla CEO Elon Musk talked about during the Q1 2023 Earnings Call.
Narayan estimates that robotaxis could account for 70 percent of Tesla’s value. He justified the new, higher price target by changing the valuation method.
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[…] function as the main driver of the company’s growth. This week, Canadian bank RBC raised Tesla’s price target from $212 to $305. Analyst Tom Narayan wrote that the firm believes in the […]
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