Tesla (TSLA) Draws Wall Street Attention on Driverless Testing in Austin

Tesla, Inc. (NASDAQ:TSLA) is one of the AI Stocks Making Waves on Wall Street. On December 16, Goldman Sachs reiterated its Neutral rating on the stock with a $400.00 price target.

Firm analysts noted Tesla’s commencement and progress on robotaxi testing without safety monitors in Austin, maintaining their cautious stance amid competitive and execution risks.

According to several posts on X by key Tesla executives, the automaker has begun testing robotaxi rides in Austin without safety monitors. This marks a major step for Tesla in the development of its autonomous technology.

The firm noted how this testing aligns with the company's previously stated plans of launching its ridehail service with robotaxi technology in 8-10 metropolitan areas by the end of the year. It also aimed to have the safety observer out by year-end in Austin.

According to Goldman Sachs, the removal of monitors for testing is a big step forward that Tesla is making with its autonomous technology. Investors will now be keeping an eye on how fast the company can scale its driverless operations and how profitable these services can be.

"We also believe Tesla is making progress with its autonomy software for consumer vehicles (which is FSD). We continue to expect autonomy (both FSD and robotaxis) to be key drivers of Tesla's growth, but we expect competition to gate the level of profitability improvement, and we are Neutral rated on the stock."

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.

While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Trending AI Stocks on Wall Street and 10 AI Stocks on the Market’s Radar

Disclosure: None.