Tesla (TSLA) CEO Elon Musk said that the EV maker’s launch of its fully autonomous robotaxi service in Austin by June is “looking good,” and has a goal of rolling out 1,000 vehicles within the first month. Speaking during an interview on Tuesday with CNBC’s David Faber, Musk explained that while the plan is bold, the company will expand carefully. Indeed, it will only operate the robotaxis in specific “safe” areas of the city by using geo-fencing technology to create boundaries. Looking ahead, Musk believes that robotaxis will be widespread within five years.
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It is worth noting that Tesla is placing its future success on fully self-driving technology. In fact, Musk hopes to have “hundreds of thousands, if not millions” of autonomous Teslas on the road by the end of next year. He argues that Tesla’s system—which is based on cameras, artificial intelligence, and a neural network—is more advanced and safer than the LIDAR-based systems used by competitors like Google’s Waymo (GOOGL).
Interestingly, Musk noted that relying on multiple sensors can cause confusion and hinted at the possibility of licensing Tesla’s self-driving tech to other carmakers. As a result, investors were encouraged by Musk’s optimistic view of Tesla’s robotaxi progress and pushed the stock higher during the first part of the interview. However, that boost faded, and the stock pulled back from its intraday high.
What Is the Prediction for Tesla Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 16 Buys, 10 Holds, and 11 Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $277.78 per share implies 20.6% downside risk.
