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      Tesla Robotaxi Launches In Dallas, Houston Represent 'Tangible Progress,' Says Morgan Stanley Analyst—Ross Gerber Terms It A Distraction

      Investment bank Morgan Stanley analyst Andrew Percoco believes Tesla Inc.‘s (NASDAQ:TSLA) launch of its Robotaxi service in Houston and Dallas is a sign of progress for the automaker’s self-driving vision.

      Tangible Progress

      In an investor note released on Sunday, Percoco said that the rollout represented “tangible progress at a time when the market was growing increasingly skeptical about Tesla’s robotaxi expansion timeline.” The analyst also shared that the move was a “material evolution” from Austin’s launch last year, with human safety drivers for several months before it became unsupervised.

      “We believe a successful robotaxi rollout has the potential to create a powerful flywheel across Tesla’s ecosystem,” Percoco said in the note, believing the rollout would help expedite the development of unsupervised Full Self-Driving (FSD) technology.

      Speaking on Tesla’s capex figures of nearly $8.5 billion, Percoco said that the advancements in FSD were “a key lever to re-invigorate auto sales and margins to fund Tesla’s longer-term ambitions in physical AI." There was no change in his price target of $415 for the automaker.


      Full story available on Benzinga.com


      Source: Benzinga
      .

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