Tesla stock price could skyrocket with the announcement of its next robotaxi, but the competition from Waymo and Baidu raises concerns about the company’s future.
Tesla CEO Elon Musk described the approaching robotaxi announcement as the company’s biggest moment since the Model 3 debut. However, expectations are low because the path to completely autonomous vehicles and robotaxis could take years. As competition with Waymo and Baidu heats up, Tesla is set to demonstrate its potential as a key participant.

Tesla’s Robotaxi Vision
Tesla is set to show off its robotaxi at a Los Angeles event on October 10. Musk has portrayed this as an important turning point for the company, comparable to the impact the Model 3 had when it debuted over a decade ago. The robotaxi is part of Tesla’s greater ambition for completely autonomous driving, and Musk believes that Tesla’s autonomous capabilities will be the primary engine of the company’s future success.
The event is considered important for Tesla stock price. If Tesla can successfully show the economic value of its robotaxi, it may attract major financial interest. By 2029, ARK Invest believes that Tesla’s robotaxi business will account for 90% of the company’s enterprise value. According to ARK’s forecasts, Tesla’s stock price might reach $2,600 by then.
Despite the excitement, Tesla’s self-driving technology has not yet achieved full autonomy. Analysts say the technology is still 10 years away from being ready for widespread use. Investors should therefore approach the October 10 event with caution and confidence.
Elon Musk talked about the upcoming Tesla Robotaxi. It will be like a combination of Airbnb and Uber. Tesla car owners will be able to make money by adding their car to the fleet. pic.twitter.com/n1kuzhTCGF
— DogeDesigner (@cb_doge) June 13, 2024
Tesla’s Competition in the Robotaxi Race
Tesla isn’t the only business aiming for domination in the robotaxi sector. Waymo, an Alphabet branch based in the United States, and Baidu, a Chinese company, are both at the forefront of creating and testing autonomous vehicles. Waymo, for example, has already established commercial robotaxi services in places such as Los Angeles, San Francisco, and Phoenix, with over 100,000 rides each week.
Tesla’s late entry into the robotaxi competition raises worries about its ability to catch up with established competitors. The competition is intense, and Waymo’s agreement with Uber to expand its service in locations like Austin and Atlanta next year further adds to the pressure.
If Tesla can make a strong case for its robotaxi technology during the October event, it may change the competitive landscape and potentially improve Tesla stock price. Investors may become doubtful of the company’s exaggerated claims if the event is dominated by talk rather than real facts.
Table 1: Robotaxi Competitors’ Weekly Rides
Company | Weekly Rides | Cities Served |
Waymo | 100,000+ | Los Angeles, Phoenix, San Francisco |
Baidu | 80,000+ | Beijing, Shanghai |
Cruise | 40,000+ | Dallas, Phoenix |
The Impact on Tesla Stock Price
Tesla’s stock had a rough year in 2024. So far, the stock’s market value has declined by more than $66.6 billion, due largely to broader market conditions and concerns about its profitability. Tesla stock price has fallen 8.3% this year, but it remains an important player in the electric vehicle (EV) sector.
The next robotaxi presentation could mark an important moment. Investors are eager to see if Tesla can genuinely monetize autonomous driving, and the event might have a significant impact on future expectations for Tesla stock price. Analysts such as Dan Ives of Wedbush Securities view the robotaxi company as a potential “holy grail” for Tesla’s future growth.
The addition of fully autonomous features to Tesla’s vehicles could result in 10 million cars on the road with full autonomy in the coming years.
However, as S&P Global Mobility’s Stephanie Brinley pointed out, true autonomous driving may not be generally available until 2030 or later. This indicates that any sudden increase in Tesla stock price could be speculative, and investors should plan for a longer investing horizon.
Challenges Ahead for Tesla’s Robotaxi
The autonomous car sector has numerous challenges, including governmental approval, safety issues, and the general preparedness of the technology. While Tesla is heavily focused on its Full Self-Driving (FSD) technology, it is still not completely capable of negotiating all road circumstances without human involvement.
Investors should also be mindful that governmental permission for self-driving vehicles differs by location, and there is still much work to be done to convince the public of their safety. Furthermore, autonomous vehicles have primarily been tested in cities with warm, dry climates, and extending into more complicated locations may bring further issues.
Table 2: Projected Sales of Autonomous Vehicles by 2034
Region | Projected Sales | Market Percentage |
U.S. | 230,000 | 1.5% |
China | 1.5 million | 5% |
Europe | 37,000 | 0.5% |
Tesla’s October 10 robotaxi event promises to be an important turning point for the firm and its future in autonomous driving. Tesla faces a difficult task with competitors such as Waymo and Baidu already in the lead. However, if the company can keep its promises and demonstrate meaningful progress toward full autonomy, the potential for a long-term increase in Tesla stock price is significant.
For the time being, investors should monitor the situation closely but stay cautious. The path to broad robotaxi acceptance is expected to take another decade, and Tesla’s existing autonomous capabilities have a long way to go. Nonetheless, the event could revive interest in Tesla stock price and long-term prospects in the autonomous car business.
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