June 24 - Tesla (TSLA, Financial) shares climbed about 2% in Tuesday's premarket session, extending Monday's 8% surge, even as U.S. regulators launched a probe into potential traffic violations involving the company's robotaxi fleet.
The U.S. National Highway Traffic Safety Administration said it is reviewing reports of Tesla's autonomous vehicles breaking traffic laws during their first day of commercial service in Austin, according to a Tuesday press release.
Footage shared online appears to show Tesla robotaxis speeding and drifting into the wrong lane. NHTSA said it's in touch with Tesla to gather more details. The agency emphasized that it does not certify vehicle systems in advance but investigates incidents if safety concerns arise.
Tesla launched its paid robotaxi service on Sunday using modified Model Y units powered by its Full Self-Driving software. Unlike other firms that rely on Lidar or radar, Tesla's vehicles use an AI-powered camera-only system.
The rollout marks Tesla's first real-world deployment of fully autonomous rides, though on a limited basis.
Despite safety concerns, investors seemed to focus more on the long-term potential of Tesla's self-driving ambitions. This latest launch could accelerate Tesla's push into the robotaxi space, but regulatory risks may remain a key overhang for the stock.
Is TSLA Stock a Buy?
Based on the one year price targets offered by 43 analysts, the average target price for Tesla Inc is $289.30 with a high estimate of $500.00 and a low estimate of $19.05. The average target implies a downside of -10.20% from the current price of $322.16.
Based on GuruFocus estimates, the estimated GF Value for Tesla Inc in one year is $267.12, suggesting a downside of -17.08% from the current price of $322.16.
