This Opportunity Could Spell Huge Success for Tesla

Source Motley_fool

Key Points

  • Tesla recently launched its robotaxi service in Texas.

  • This could spawn a multitrillion-dollar market.

  • These 10 stocks could mint the next wave of millionaires ›

Tesla (NASDAQ: TSLA) has been stealing headlines with its latest robotaxi launch in Austin, Texas. Yet shares have fallen by 20% over the past six months. If you're looking to buy into this iconic growth stock at a discount, this could be your best chance in years.

Tesla's robotaxi division could lead a $10 trillion global market

On the surface, Tesla shares look pricey versus the competition. Shares trade at 11.5 times sales. Electric vehicle (EV) stocks Rivian Automotive and Lucid Group, meanwhile, trade at 2.7 times sales and 7.1 times sales, respectively. But looking at the robotaxi opportunity alone, Tesla's premium could be worth it.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Cathie Wood, CEO of Ark Investment Management, believes the robotaxi market will be huge. "We think $8 to $10 trillion for the entire autonomous taxi opportunity throughout the world, from almost nothing," Wood said in March. "That's how quickly AI is going to cause these things to happen."

Within the next five years, Wood predicts Tesla's share price to reach $2,600. (It closed Wednesday at $322.) More than 90% of that increase, she believes, will be due to the robotaxi opportunity.

A person buckles their seat belt in a car.

Image source: Getty Images.

Wood is known for her bold predictions. This time, however, she's not alone. Analyst Dan Ives believes the robotaxi opportunity could add $1 trillion in value to Tesla's market cap by the end of 2026.

In reality, the robotaxi opportunity will likely take years to fully play out. It could even take decades. But Tesla has two advantages that most of its competition lacks: brand recognition and access to capital. With a $950 billion market cap, Tesla can raise billions of dollars while barely diluting current shareholders. And while its brand image has taken a hit recently, surveys show that the vast majority of Tesla owners remain fanatical about the business.

Tesla's robotaxi opportunity is huge. Its brand and capital advantages make it a long-term buy for robotaxi bulls.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $447,134!*
  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $40,090!*
  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $652,133!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of July 14, 2025

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Stellar Price Forecast: XLM eyes triangle breakout rally amid PayPal’s stablecoin integration buzzStellar (XLM) ticks higher by nearly 1% at press time on Friday, adding minor gains to the 5% surge from Sunday. Stellar nears the resistance trendline of a descending triangle pattern after bouncing off its support floor on Wednesday, accounting for a near 12% surge. 
Author  FXStreet
7 Month 07 Day Mon
Stellar (XLM) ticks higher by nearly 1% at press time on Friday, adding minor gains to the 5% surge from Sunday. Stellar nears the resistance trendline of a descending triangle pattern after bouncing off its support floor on Wednesday, accounting for a near 12% surge. 
placeholder
Ripple’s $21 Trillion Dream: What Capturing 20% Of SWIFT Volume Means For XRPRipple Labs, a crypto payments company, continues to set its ambitions and those of XRP higher than ever as it edges closer to disrupting the global financial messaging giant SWIFT. After Ripple CEO
Author  NewsBTC
7 Month 14 Day Mon
Ripple Labs, a crypto payments company, continues to set its ambitions and those of XRP higher than ever as it edges closer to disrupting the global financial messaging giant SWIFT. After Ripple CEO
placeholder
Fartcoin, SPX6900 Price Prediction: Meme coins eye further gains amid record-high Open InterestsThe Solana-based meme coin market capitalization has jumped 6% over the last 24 hours, reaching $14.64 billion, leading the broader cryptocurrency market's recovery. Fartcoin (FARTCOIN) and SPX6900 (SPX), which edged lower after double-digit gains on Wednesday, are among the top performers.
Author  FXStreet
7 Month 17 Day Thu
The Solana-based meme coin market capitalization has jumped 6% over the last 24 hours, reaching $14.64 billion, leading the broader cryptocurrency market's recovery. Fartcoin (FARTCOIN) and SPX6900 (SPX), which edged lower after double-digit gains on Wednesday, are among the top performers.
placeholder
Ethereum Road To $10,000: Replay Of May’s Playbook Predicts Another BreakoutAfter beating the resistance mounted at the $3,000 by bears for months now, the Ethereum price looks primed for a further breakout. Expectations currently are that the Ethereum price rally will
Author  NewsBTC
7 Month 18 Day Fri
After beating the resistance mounted at the $3,000 by bears for months now, the Ethereum price looks primed for a further breakout. Expectations currently are that the Ethereum price rally will
placeholder
Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC nears all-time high, ETH eyes $4,000, XRP sets new recordBitcoin (BTC) price is trading above $120,000 on Friday, inching closer to its all-time high of $123,218. Ethereum (ETH) price has surged by over 20% so far this week, with bulls aiming for the $4,000 level next.
Author  FXStreet
7 Month 18 Day Fri
Bitcoin (BTC) price is trading above $120,000 on Friday, inching closer to its all-time high of $123,218. Ethereum (ETH) price has surged by over 20% so far this week, with bulls aiming for the $4,000 level next.
goTop
quote