Tesla (TSLA, Financial) has launched its much-anticipated Robo-Taxi service in Austin, Texas. CEO Elon Musk congratulated the company's AI software and chip design teams for successfully completing the project. Following the announcement, Tesla’s stock saw a 1.01% rise, reaching $325.40 per share.
The service is currently limited to a 10 square-mile area in Austin and includes a safety officer in the vehicle. Guggenheim analyst Ronald Jewsikow noted that the service's initial performance was smooth, describing it as almost flawless. Despite this, he maintains a "sell" rating for TSLA, citing overvaluation with a target price of $175 per share.
Since Tesla's announcement of its Robo-Taxi service in October last year, the stock has surged over 35%. UBS analyst Joseph Spak raised the target price to $215 but also retained a "sell" rating, reasoning that the stock price already reflects these advancements.
Challenges remain, including new Texas laws requiring permits for autonomous vehicle services starting September 1. Nonetheless, this launch marks a significant milestone for TSLA as one of the few companies to offer paid autonomous vehicle services. Technical analyst Katie Stockton indicates key support and resistance levels for TSLA stock at $300 and $370-$380, respectively.
