money Analyst on Tesla robotaxis: 'I will believe it when I see it'
Tesla (TSLA) CEO Elon Musk is staying bullish on both human-like robots making EVs and driver-less autos carrying humans around.
Musk told investors on a Wednesday evening earnings call Tesla will begin making robotaxis — or cars without pedals and steering wheels to be used by consumers like Uber —in 2024.
"If you look some of our projections, it would appear that a robotaxi ride will cost less than a bus ticket, a subsidized bus ticket, or subsidized subway ticket," Musk said.
Musk has been pounding the table on a fleet of robotaxis for years, noting they could be a sizable profit driver for Tesla in the future.
However, hurdles to getting the full self-driving technology right has hindered the rollout.
"I am still a bit skeptical," Jefferies Managing Director Philippe Houchois said on Yahoo Finance Live (video above). "I will believe it when I see it."
Stumbling blocks for Tesla put it behind Waymo (GOOGL), which recently said it will begin to soon offer fully autonomous vehicles in San Francisco to consumers. The autonomous driving company has also made strong inroads into Arizona with its driver-less car fleet.
And so despite the bold claims by Musk, Wall Street continues to be cautious on the financial potential of Tesla robotaxis — at least initially until they start rolling off the production line.
In the meantime, Tesla aims for another impressive year of making electric vehicles.
"Tesla is extending their lead in the EV arms race," Wedbush Managing Director Dan Ives told Yahoo Finance recently. "And once Austin and Berlin are fully ramped over the coming months, the expanded production capacity will be a linchpin to meeting the growing Tesla demand trajectory in 2022 and beyond."
Shares of Tesla rose 3% on Thursday as Tesla trounced Wall Street estimates for sales, margins, and profits. The stock was the number one trending ticker on the Yahoo Finance platform.
Musk noted that despite COVID-19 related shutdowns at its key Shanghai manufacturing plant recently, Tesla production has come back with a "vengeance." He added that will aid in Tesla potentially delivering 60% more cars this year compared to 2021, ahead of many analyst estimates.
The controversial entrepreneur also confirmed the Tesla Cybertruck will begin production in 2023 and hinted strongly at further price increases to offset inflationary pressures.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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