Tesla Robotaxi Testing Sparks Stock Rally Amid Mixed Wall Street Sentiment
Tesla (TSLA) shares climbed 3.56% Monday after CEO Elon Musk announced the company had begun testing driverless robotaxis without safety monitors. The electric-vehicle Maker expanded its Austin-based robotaxi fleet, which initially operated with human oversight, using modified Model Y vehicles equipped with Full Self-Driving technology.
Wall Street remains divided on Tesla’s prospects. Morgan Stanley’s Andrew Percoco downgraded the stock to Equal-weight from Overweight while paradoxically raising the price target to $425 from $410. The move reflects lingering Optimism about Tesla’s AI applications, including its AI-trained robotaxi fleet, which shareholders believe could unlock new growth avenues.
Monday’s rally extends Tesla’s 30-day gain to over 17%, defying recent analyst forecast cuts. The robotaxi expansion marks a strategic pivot as Tesla positions 2024 as a breakthrough year for autonomous vehicle commercialization.
