<p><strong>Tesla</strong> <span class="ticker-mention inline-flex items-center font-bold">(TSLA <span class="ml-1 text-green-900">+1.56%</span>)</span> is a stock that divides Wall Street analysts, with Piper Sandler, Canaccord Genuity, and Wedbush in the bullish camp currently, with respective price targets of $500, $450, and $600; while <strong>UBS </strong>and <strong>Barclays</strong> take a more skeptical view with their respective $364 and $360 targets. The stock closed Tuesday at $434.</p>
<p>It remains to be seen which camp is right, but we do know that in the near term, the robotaxi rollout will determine the stock's fate. Here's what to expect. </p>
<h2>Establishing a robotaxi business</h2>
<p>Canaccord analyst George Gianarikis recently raised his price target on the stock, partly because the company is derisking its supply chain with large-scale investments in semiconductors, lithium refineries, battery production, and other factory investments. </p>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Tesla Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL1RTTEEucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL1RTTEEucG5nJnc9MTI4"/></div><div><h2>NASDAQ: TSLA</h2><div>Tesla</div></div></div><div><div><div>Today's Change</div><div>(1.56%) $6.76</div><div>Current Price</div><div>$440.35</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$1.6T</div><div>Day's Range</div><div>$435.56 - $445.57</div><div>52wk Range</div><div>$273.21 - $498.83</div><div>Volume</div><div>2.4M</div><div>Avg Vol</div><div>61.7M</div><div>Gross Margin</div><div>19.07%</div></div></div></div></section>
<p>It's a powerful case that emphasizes the long-term potential of the businesses that CEO Elon Musk is putting together, with the earliest major catalyst coming from Cybercab. It's not so much the immediate profitability of Cybercab that will move the needle, but rather the establishment of a core robotaxi business that should scale dramatically in the coming years.</p><div><div id="foolcom_sidebar_top_container"><div><div></div><div></div><div></div></div></div></div>
<h2>What Wall Street expects</h2>
<p>These assumptions are baked into Wall Street's forecasts. While the numbers reflect a wide range of outcomes, it's clear that robotaxi revenue won't be material in 2026, as Musk stated on the recent earnings call. He did say it would &#34;be material probably in a significant way next year,&#34; and the consensus calls for 1.6% of revenue from the robotaxi business next year.</p><div></div>
<div><table><thead><tr><th>
<p>Wall Street Estimates for Cybercab/Robotaxi Revenue</p>
</th><th>
<p>2026</p>
</th><th>
<p>2027</p>
</th><th>
<p>2028</p>
</th><th>
<p>2029</p>
</th><th>
<p>2030</p>
</th></tr></thead><tbody><tr><td>
<p>Consensus</p>
</td><td>
<p>$183 million</p>
</td><td>
<p>$1,843 million</p>
</td><td>
<p>$6,998 million</p>
</td><td>
<p>$22,276 million</p>
</td><td>
<p>$42,436 million</p>
</td></tr><tr><td>
<p>Median</p>
</td><td>
<p>$87 million</p>
</td><td>
<p>$1,205 million</p>
</td><td>
<p>$2,285 million</p>
</td><td>
<p>$25,748 million</p>
</td><td>
<p>$34,776 million</p>
</td></tr><tr><td>
<p>Excluding minimum and maximum estimates</p>
</td><td>
<p>$101 million</p>
</td><td>
<p>$1,302 million</p>
</td><td>
<p>$5,419 million</p>
</td><td>
<p>$22,966 million</p>
</td><td>
<p>$40,707 million</p>
</td></tr><tr><td>
<p><strong>Total company revenue</strong></p>
</td><td>
<p><strong>$102,760 million</strong></p>
</td><td>
<p><strong>$117,248 million</strong></p>
</td><td>
<p><strong>$141,106 million</strong></p>
</td><td>
<p><strong>$177,346 million</strong></p>
</td><td>
<p><strong>$215,037 million</strong></p>
</td></tr></tbody></table></div>
<p>Data source: S&amp;P Global Market Intelligence Visible Alpha. </p>
<p>Whichever way you look at it, Wall Street is baking in a substantive ramp-up in robotaxi revenue in the coming years, such that it could contribute 20% of revenue in 2030 and about 30% of gross profit. More importantly, forecasts expect robotaxis to account for a major share of Tesla's marginal revenue growth over the next few years.</p><div><div id="in_line_article_pitch_container"><div><div><div></div></div><div><div></div><div></div><div></div></div></div></div></div>
<h2>What it means to investors</h2>
<p>Musk recently told investors he expected the robotaxi service to be widespread by the end of the year.  As exciting as that prospect is, investors need to be patient, because &#34;widespread&#34; doesn't necessarily mean a huge number of vehicles in each location. Nor does it mean a lack of geofencing.</p>
<div><img alt="The Tesla logo on top of a reddened image of a Tesla vehicle." width="880" height="587" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84Njk4MzAvdHNsYS5wbmcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84Njk4MzAvdHNsYS5wbmcmdz0zODQw"/>
<p>Image source: The Motley Fool.</p>
</div>
<p>Those things are likely to come when, as Musk outlined on the earnings call, full self-driving v15 software is validated and released &#34;before going to large-scale unsupervised FSD.&#34;</p>
<p>Of course, investors shouldn't slavishly follow analyst upgrades, as useful as they are, but instead focus on anticipating and monitoring the gradual rollout of robotaxis and, ultimately, the development of v15 FSD. The company has an exciting future, but the big ramp-up in robotaxi deployment and revenue isn't likely until next year.</p><div id="article_pitch_container"><div><div></div><div></div><div></div><div></div><div></div><div></div><div></div></div></div><div id="promobox_container"><div><div></div><div></div><div></div><div></div></div></div>

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<p>Tesla's stock has received upgrades from analysts due to its robotaxi potential, with price targets ranging from $360 to $600. The company is investing heavily in its supply chain, which could enhance long-term growth. While robotaxi revenue is expected to be minimal in 2026, forecasts predict significant increases by 2030, potentially contributing 20% of revenue. Investors are advised to monitor the rollout of robotaxis and the development of full self-driving software, as substantial revenue growth may not occur until next year.</p>

- Tesla's stock divides analysts, with bullish targets from firms like Piper Sandler and Wedbush at $500 and $600, while UBS and Barclays show skepticism with lower targets of $364 and $360.  
- The anticipated robotaxi rollout is crucial for Tesla's near-term prospects, supported by significant investments in the supply chain, including semiconductors and battery production.  
- While Wall Street forecasts a gradual ramp-up in robotaxi revenue, it is expected to begin impacting total revenue significantly starting next year, highlighting the need for investor patience.

Tesla Stock Gets Wall Street Upgrade on Robotaxi Potential