Tesla’s share price retreated on Tuesday subsequent to losing a portion of the 8 percent advance registered on Monday, the day after the company launched a limited robotaxi service in Austin, Texas. However, Benchmark Capital upgrade kept the momentum heading upward as they increased their price target of Benchmark capital to 475 dollars and the thoughtful, safety-first nature of the rollout is one of the long-term characteristics.
Robotaxi debut in Austin On 22 June, Tesla introduced a restricted, invitation-only autonomous ride-sharing program involving approximately ten autonomous Model Y vehicles equipped with safety personnel in the front seats. Passengers paid 4.20 dollars, and the early response of people who had been part of the test route was well in line with it being a smooth and futuristic experience, even when it came to minor incidents.
Regulatory and safety spot light As much as the launch was credited with deliberate safety, a number of clips were flying around, which depicted autonomous vehicles getting into a wrong lane, going above allowed speeds, and making mistakes in parking. These accidents made the National Highway Traffic Safety Administration (NHTSA) demand further data about Tesla.
Stock reaction Benchmark Capital went in ours toward the fat end of a stock-price dip in the middle of the week, as Tesla closed at about $327 and $328 (different sources spell out different numbers) Wednesday. The company kept its Buy rating and predicted a 45 percent upside.
Confusion in delivery and sales Mixed trends in delivery/sales A hindrance to the prospective delivery of vehicles in the second quarter (366,000-404,000 vehicles) still prevails as worldwide demands continue to weaken at a rate of about 28 percent less in April compared to March in Europe, 16 percent less in April itself in the US and 8 percent less year-to-date in China.
Valuation factors Tesla’s robotaxi announcement has contributed an approximate 38 to 54 percent rally since the low points of late April. However, the shares are still trading slightly more than 19 percent lower than its year-to-date high and 33 percent below its December high. UBS, for example, continues to maintain a “Sell” rating, contending that the potential robotaxi upside has already been reflected in the valuation.
Analyst bubble versus caution split Benchmark finds Tesla a pivotal stock selection and views the robotaxi launch as a decisive step toward high-technology automation, predicting a future valuation of more than $1.5 trillion. However, other analysts like UBS, Baird and the Wedbush focus on long-term issues about traditional vehicle sales as a tone against optimism.
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