As Tesla prepares to launch the early stages of its robotaxi offering in Austin this weekend, the carmaker will make good on its long-held ambitions to enter the ride-hailing business.
Ives, whose Wedbush Securities is often bullish on the tech sector, welcomed the robotaxi launch. “We view this autonomous chapter as one of the most important for Musk and Tesla in its history as a company,” he wrote in an analyst note released Friday.
The idea that Tesla’s self-driving technology would enable it to have a fleet of robotaxis is central to the investment thesis for the company. Its chief executive, Elon Musk, has long outlined his vision of millions of self-driving Teslas shuttling around paying customers as the next phase of the company’s future. Musk has said the company’s aim is to allow Tesla owners to make their cars part of its robotaxi fleet when they aren’t using their cars.
Tesla did not respond to a request for comment.
After the test in Austin, which will start in a geofenced location with about 25 cars, future expansions will be made easier by a favorable regulatory environment.
“We fully expect under a Trump White House these key initiatives will now get fast-tracked as the federal regulatory spiderweb that Musk & Co. have encountered over the past few years around autonomous clears significantly,” Ives said.
“Looking ahead, we are concerned that the war of words between President Trump and Elon Musk, along with the expiration of EV credits, could further weaken demand for new Teslas,” wrote Argus analyst Bill Selesky.
Ives, however, saw past the spat. “The BFF/frenemy situation with Musk and Trump has created a soap opera on this front, but ultimately Trump wants the U.S. to stay ahead of China in this AI arms race, and autonomous is a key factor in who wins AI with Tesla playing a major role on robotaxis,” he said. “We expect over the coming months an easing of the federal framework for autonomous with more power going to the federal regulators, with states having less authority on the autonomous rules.”
