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Tesla (TSLA) shares are in focus on Thursday following reports the company is searching for employees for its robotaxi operations in the New York City.
The news arrives only days after Elon Musk, the billionaire chief executive of the electric vehicle behemoth, threatened a lawsuit against Apple (AAPL) for antitrust violation.
Tesla stock has been a tale of two cities this year. For those who invested in it in early 2025, it’s down nearly 20% at the time of writing, but for ones that hopped on in early April, it’s up 50%.
Growing Robotaxi Services Could Benefit Tesla Stock
TSLA’s push to hire robotaxi operators in NYC indicates forward momentum in its autonomous vehicle strategy, an area investors increasingly view as a high-margin, scalable growth engine.
More importantly, plans of expanding into one of the world’s most complex urban environments signals management’s confidence in the company’s Full Self-Driving (FSD) technology.
Note that Tesla does not currently have regulatory authorization for its robotaxi services in NY, but the news still is a positive for TSLA shares.
Why? Because it reinforces the company’s commitment to capture future ride-hailing revenue, and its overall stature as a tech innovator, which may boost investor sentiment and speculative value.
Guggenheim Warns of a 50% Crash in TSLA Shares
CEO Elon Musk has already confirmed Tesla will open its robotaxi services to the public in Austin next month but a senior Guggenheim analyst doubts the company’s ability to effectively execute its robotaxi platform.
In a research note on Thursday, Ronald Jewsikow cited TSLA’s lack of transparency around Safety Monitors for his bearish view on the EV stock.
Given that human safety drivers are still present in Tesla’s robotaxis, it’s well within reason to assume that full autonomy isn’t ready, despite investor optimism, he told clients.
Guggenheim maintains its “Sell” rating on Tesla shares with a $175 price target indicating potential downside of about 50% from current levels.
Wall Street Remains Dovish on Tesla
While note as bearish as Guggenheim, other Wall Street firms aren’t particularly positive on TSLA stock either.
The consensus rating on Tesla stock currently sits at “Hold” only with the mean target of roughly $300 suggesting potential downside of some 10% from here.
