- Tesla shares could jump another 19% thanks to the rise of robot-taxis, according to RBC.
- That would add over $150 billion to the EV giant's total market capitalization.
- Robo-taxis "could potentially transform society" and account for over 70% of Tesla's future value, analysts said.
Tesla's market capitalization could soar by over $150 billion thanks to a looming surge in demand for robo-taxis, according to RBC Capital Markets.
The self-driving taxi "could potentially transform society more than anything else in our lifetimes" and makeup over 70% of the EV giant's future value, a team of analysts led by Tom Narayan said in a note to clients Thursday.
The Canadian bank lifted its price target for Tesla's stock to $305 – over 19% above the $255.90 shares traded at as of Thursday's close.
Those gains would add another $155 billion to Elon Musk's company's total valuation, by Insider's calculations. Tesla has already seen its market cap surge by over $270 billion in the past month after it struck deals with General Motors and Ford that would allow them access to the EV leader's charging infrastructure.
Tesla should be able to dominate the robot-taxi market given how well-developed its self-driving tech already is, according to RBC.
Narayan's team estimated that Musk's EV maker could achieve a 25% market share in the US, as well as an 8% share in Europe and a 7% share in China.
Tesla's share price is already up 107% in 2023, with the EV maker adding over $300 billion of market cap over the past month alone.
The robo-taxi is the strongest of several factors that will help the stock extend its breakneck rally, according to RBC.
Tesla's early success in its price war and the landmark deals it signed with Ford and General Motors last month could also fuel further gains, the analysts said.
They added that the stock will also benefit from the frenzy for artificial intelligence, which has helped fellow tech giant Nvidia to rack up triple-digit gains and reach a $1 trillion valuation.
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