Tesla's Driverless Test: A Step Forward or Just Hype?

Tesla has started testing its robotaxis in Austin without a safety driver. This move is seen as a sign of progress in its self-driving technology. But what does this really mean for Tesla and its stock? An analyst from Goldman Sachs, Mark Delaney, has kept a neutral stance on Tesla. He thinks the stock is worth around $400. He lowered his earlier estimate from $425 after looking at Tesla's recent financial results. Delaney points out that Tesla's plan to have robotaxis in 8 to 10 cities by the end of 2025 is still on track. The big question now is how fast Tesla can expand its driverless services and make them profitable.Tesla's approach to combining software and hardware could give it an edge over competitors like Uber, Lyft, Waymo, and Pony AI. These companies are also working on self-driving technology. For example, Uber aims to have autonomous vehicles in 10 cities by the end of 2026, and Waymo is already operating in several cities. The market for self-driving rideshare services in the U. S. is expected to hit $7 billion by 2030. Delaney sees Tesla's improving Full Self-Driving (FSD) software as a positive sign. Reviews suggest that FSD is well-received, which could drive future profits. As of now, Tesla's stock is up slightly, around $477. This is within its 52-week range of $214. 25 to $488. 54. The stock has seen a 25. 8% increase so far this year. But is this progress or just hype? Only time will tell if Tesla can deliver on its promises and stay ahead of the competition.