TSLA Jun 2024 220.000 call

Cities are 'the biggest hurdle' for Tesla's robotaxi: Analyst

RBC Capital Markets Global Autos Analyst Tom Narayan has lowered his price target for Tesla (TSLA) from $293 to $227, citing concerns about the company's anticipated robotaxi project. Narayan joins the Morning Brief to share his perspective on the electric vehicle giant's outlook. Narayan's price target revision was influenced by two key factors. First, he anticipates lower pricing in the rideshare industry by the time robotaxi launches. Second, he projects higher revenue share percentages for rideshare platforms like Uber (UBER) and Lyft (LYFT), potentially diminishing robotaxi's valuation. Despite these concerns, Narayan maintains that the robotaxi project will be the "biggest contributor of value for Tesla." However, Narayan emphasizes that "the biggest hurdle" for this technology lies not in its development but in infrastructure adaptation. "The tech isn't that really far away, it's not the tech. It's really the cities need to reengineer themselves," Narayan explains to Yahoo Finance. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith