Self-driving cars were once the stuff of science fiction, but in 2024, autonomous vehicles have become one of the market’s most-watched themes. 

Tesla (TSLA) remains at the center of the conversation as it boldly pushes forward with its robotaxi plans. That ambition takes a pivotal step forward this month.

After postponing its initial June 12 launch, Tesla CEO Elon Musk has tentatively rescheduled the company’s highly anticipated robotaxi reveal in Austin, Texas to June 22. This delay, while disappointing for investors, reflects the serious technical and regulatory challenges involved in transitioning from supervised to fully autonomous driving.

Still, anticipation is building. Analysts view this launch as a potential catalyst for Tesla’s next growth leg, particularly as Musk works to repair political relationships that could influence federal AV regulation. 

For Tesla stock fans, June 22 is shaping up to be more than just a date. It is a potential turning point in the company’s AI-driven future.

About Tesla Stock                     

With a market capitalization of around $1 trillion, Tesla is a leading player in the electric vehicle (EV) and energy sectors. The company designs, develops, manufactures, and sells high-performance EVs, as well as energy generation and storage systems. Its lineup includes the Model 3, Model Y, Model S, Model X, and the recently launched Cybertruck.

The company also provides a range of services, including vehicle service centers, mobile service technicians, and a global network of Supercharger stations. Additionally, Tesla is actively developing full self-driving (FSD) technology and plans to launch a robotaxi network, alongside its work on the Optimus robot.

Tesla’s share price has taken investors on a roller-coaster ride over the past year. After hitting an all-time high of $488.54 in December 2024 amid optimism surrounding President Donald Trump’s policies, the stock has since pulled back. While it currently trades about 25% below its year-to-date, Tesla is still up roughly 85% over the past 52 weeks.

Despite the recent pullback, Tesla’s valuation remains significantly stretched. Its adjusted forward price-earnings (P/E) ratio stands at 172x, compared to a sector median of 16.2x as well as its own historical average of 115x, suggesting the stock is overpriced relative to its peers.

Tesla Missed Q1 Esitmates

On April 22, Tesla reported weaker-than-expected Q1 results, with automotive revenue down about 20% year-over-year to roughly $14 billion, contributing to total revenue of $19.34 billion, down about 9% from $21.3 billion a year earlier. 

Net income plunged 71% to $409 million, while adjusted EPS of $0.15 missed forecasts by $0.20.

Tesla’s operating margin slid to around 2.1%, down from 5.5% in the prior-year period. 

Free cash flow surged sharply to about $664 million, up from a free cash outflow of nearly $2.5 billion in the year-ago period. However, free cash flow was down sequentially. Tesla attributed tighter margins partly to cost reductions but noted that lower revenue and heavier investments weighed on cash generation.

Looking ahead, analysts see full-year 2025 revenue near $98 billion with EPS around $1.40. This revenue forecast is down from a previous guide of $107 billion as macro pressures and competition intensify.

Tesla Has Second-Mover Advantage in Robotaxis

Tesla’s robotaxi rollout will start with a small, monitored fleet, so investors must temper expectations. Although Elon Musk has promised robotaxis since 2016, the upcoming launch feels more grounded. 

Tesla enters as a second mover after Waymo, which already runs thousands of paid trips weekly. Tesla relies on cameras and software, while Waymo uses lidar, radar, and extensive testing. That difference may affect initial performance and safety validation.

Cost will matter. Tesla says its rides will match Uber (UBER) prices, but it hasn’t shared details. Waymo already competes on price in some markets, aligning with Uber and Lyft (LYFT). If Tesla delivers a reliable, cost-competitive service, it could unlock huge upside in its autonomy strategy. If not, the hype may fade and trigger a stock pullback. Investors should watch the Austin launch closely: tangible progress there will guide whether Tesla’s broader ambitions can justify its high-growth valuation.

What Do Analysts Say About Tesla Stock?

Goldman Sachs analysts believe Tesla may hold an edge in the autonomous driving race, thanks to its low hardware costs and AI-driven software stack that could scale quickly. They highlight Tesla’s use of custom silicon and a camera-only approach as cost-saving advantages over rivals, but caution that CEO Elon Musk’s ambitious robotaxi rollout goals face significant execution risks.

Overall, analysts acknowledge Tesla’s technological leadership but urge investors to remain cautious. Progress on the robotaxi front must meet high expectations to justify the company’s premium valuation. Wall Street’s consensus rating is currently a “Hold,” with a 12-month average price target of $292, implying about 10% downside from current levels. However, for bulls, the Street-high target of $500 still leaves room for over 50% upside.