Tesla Inc (NASDAQ:TSLA) shares added about 4.6% to about $480 on Monday after CEO Elon Musk confirmed the company has made progress on testing of its Robotaxis, including moving towards driverless operation in select markets.
A Tesla Robotaxi was spotted driving in Austin, Texas, on Sunday without a safety driver. Musk later confirmed the video, posting on his social media platform X, “Testing is underway with no occupants in the car.”
Wedbush analysts said the development highlights what they view as the start of Tesla’s next phase, focused on autonomous driving and robotics.
The firm reiterated its ‘Outperform’ rating on Tesla with a 12-month price target of $600.
“Heading into 2026, this marks a monster year ahead for Tesla and Musk as the autonomous and robotics chapter begins,” the analysts wrote, adding that investors remain divided on how quickly the Robotaxi business will scale following the Austin testing period.
Wedbush wrote that it expects an accelerated rollout of Robotaxi services across the US, with volume production of Cybercabs beginning around April or May.
The analysts noted that Tesla is advancing its artificial intelligence strategy with autonomous driving and robotics “front and center” as the company moves into 2026, which they described as a potential “game changer” for Tesla’s future.
The analysts also believe Musk is pushing Tesla into its next stage of growth as a “wartime CEO” and forecast Robotaxi rollouts in more than 30 US cities in 2026. Wedbush estimated the AI and autonomous opportunity could be worth at least $1 trillion for Tesla.
Tesla could reach a $2 trillion market capitalization over the coming year, with a bull-case scenario of $3 trillion by the end of 2026, Wedbush believes. The firm’s bull-case price target for Tesla is $800 over the next 12 to 18 months.
“The AI valuation will start to get unlocked in the Tesla story, and we believe the march to an AI-driven valuation for TSLA over the next 6-9 months has now begun in our view with FSD and autonomous penetration of Tesla's installed base and the acceleration of Cybercab in the US representing the golden goose for Musk & Co,” they wrote.
The analysts added that increased adoption of Full Self-Driving could change Tesla’s financial model, estimating FSD penetration could rise above 50% over time.
Wedbush repeated that it does not view Tesla solely as a car company, but as a broader technology company entering what it sees as a key chapter in its development. “Now it’s about driving the most important chapter in Tesla's history with an autonomous future ahead,” they wrote.