Tesla’s valuation could soar another $150 billion on robo-taxi surge, RBC says

Tesla Motors CEO Elon Musk speaks during manufacturing

Tesla founder and CEO Elon Musk.SUZANNE CORDEIRO/AFP via Getty Images

  • Tesla shares could jump another 19% on the rise of robo-taxi, according to RBC.

  • That would add more than $150 billion to the electric vehicle giant’s total market capitalization.

  • Robo-taxis “could potentially transform society” and account for more than 70% of Tesla’s future value, analysts say.

Tesla’s market cap could soar more than $150 billion on an impending surge in demand for robo-taxi, according to RBC Capital Markets.

The self-driving taxi “could potentially transform society more than anything else in our lifetime” and account for more than 70% of the future value of the electric vehicle giant, a team of analysts led by Tom Narayan said Thursday in a note to the public. clients.

The Canadian bank raised its price target for Tesla shares to $305, more than 19% above the $255.90 traded at Thursday’s close.

Those gains would add another $155 billion to the total valuation of Elon Musk’s company, according to Insider calculations. Tesla has already seen its market capitalization increase by more than $270 billion in the past month, after striking deals with General Motors and Ford that would give them access to the electric vehicle leader’s charging infrastructure.

According to RBC, Tesla should be able to dominate the robot taxi market given the level of development of its self-driving technology.

Narayan’s team estimated that Musk’s electric vehicle maker could achieve a 25% market share in the United States, as well as an 8% share in Europe and a 7% share in China.

“We now believe this is at the heart of Tesla’s investment thesis,” they said.

Tesla’s stock price has already risen 107% in 2023, with the electric vehicle maker adding more than $300 billion in market capitalization in the past month alone.

The robo-taxi is the strongest of several factors that will help the stock extend its dizzying rally, according to RBC.

Tesla’s early success in its price war and the landmark deals it signed with Ford and General Motors last month could also fuel further gains, analysts said.

They added that the stock will also benefit from the AI ​​frenzy, which helped fellow tech giant Nvidia rack up triple-digit gains and reach a $1 trillion valuation.

“Post-Nvidia commerce is in full force, benefiting companies with the perception or ambition to exploit AI capabilities,” Narayan’s team wrote.

Learn more: Tesla has declared a price war on makers of electric and traditional vehicles. There are signs Elon Musk’s company is making quick gains.

Read the original article on Business Insider

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