Wall Street’s stance on Tesla Inc. (NASDAQ: TSLA) has taken a dramatic turn in recent months. After a period of skepticism rooted in delivery slowdowns and CEO Elon Musk’s high-profile controversies, a growing cohort of analysts are now lifting their Tesla price targets to unprecedented levels. Their bullishness isn’t merely optimism—it’s rooted in concrete developments: the rollout of Tesla’s robotaxi service, a surge in Full Self‑Driving (FSD) software potential, and the possibility of strategic partnerships with ride‑hail giants like Uber. This pivot begs the question: what changed, and is this enthusiasm justified?

The Robotaxi Catalyst

The most significant trigger for the recent wave of bullish sentiment is the launch of Tesla’s robotaxi service in Austin, Texas on June 22, 2025. Initially limited to an invite‑only fleet of Model Ys with onboard safety monitors, the debut signaled a real-world move toward Musk’s decade‑long vision for autonomous ride‑hailing

Early investor reactions: Within days, Tesla stock rallied—10% intraday on the day following the launch Benchmark’s Mickey Legg raised his target to $475, citing the robotaxi as pivotal to Tesla’s transformation into a “high‑tech automation and robotics company”. Wedbush’s Dan Ives was even more exuberant, upping his target from $350 to $500, calling the robotaxi event the “golden age of autonomous”.

This optimism reflects a belief that robotaxis can transform Tesla from an automobile maker into a software‑led mobility platform—with subscription FSD revenue and fleet monetization eclipsing traditional car sales.

 FSD’s Valuation Leap

Behind Tesla’s autonomous fleet lies the linchpin of its FSD software. RBC Capital analysts Tom Narayan and Brad Erickson led a tour of Giga Texas, concluding they had “increasing confidence” in Tesla’s FSD and vertical integration edge   Their upgraded valuation model credits FSD with $102 per share, cars at $36, and robotaxis at $136, a structure that supports a price target of $313—up from $249.

Meanwhile, Benchmark’s Legg and Wedbush’s Ives echoed these views. Legg described Tesla’s camera‑based autonomy as both scalable and cost‑effective, while Ives called the Austin service a “spark for autonomous driving” . Even UBS’s Joseph Spak raised targets post‑launch, although he maintained bearish ratings, calling the robotaxi promise “priced in”

These evaluations underline a shift: analysts now believe FSD isn’t a distant dream but a tangible—and monetizable—reality.

 Analyst Ratings Surge

Stock‑by‑stock sentiment data confirms broader support. Among the 54 analysts tracked by FactSet, the highest price targets hail from Benchmark and Wedbush, while even cautious voices at UBS and JPMorgan are inching upward

In contrast, UBS analysts still consider Tesla “fundamentally overvalued” with a target of $215, and JPMorgan remains skeptical at $115, citing delivery declines and looming policy shifts . Yet the narrative is evolving: eight of seventeen Visible Alpha‑tracked brokers rate the stock a Buy, with only four calling it a Sell. The average target stands near $300, not far below current levels

Benchmark’s latest target anticipates a 45% upside, and Wedbush’s sees a 40% rally by end‑2026 . That combination—robotaxi validation, software monetization, and analyst repricing—constitutes the crux of the bullish case.

Uber: A Friendly Protagonist?

One surprising catalyst amplifying this Tesla optimism? Uber Technologies Inc.

Uber’s CEO, Dara Khosrowshahi, publicly floated the idea of partnering on Tesla robotaxis, arguing that embracing Tesla drivers within Uber’s platform could be much more effective than competing  . RBC analysts echo this, forecast­ing a “rising conviction” that Tesla might collaborate with Uber or Lyft, especially given Tesla’s own need to build scale

Wall Street has taken notice: RBC’s Brad Erickson has maintained a bullish outlook on Uber—partly because any delay in Tesla’s rollout provides breathing space for Uber’s autonomous efforts . Meanwhile, Jefferies’ John Colantuoni labeled Tesla’s robotaxi announcement a “best‑case outcome” for Uber, with Uber stock jumping nearly 10% after the announcement .

In a twist, Tesla’s autonomous ambitions are inadvertently reinforcing confidence in Uber. Shared platforms, mutual partnerships, and network effects are emerging as plausible synergistic drivers.

Marketplace Patterns & Headwinds

Despite the enthusiasm, several red flags remain:

Regulatory scrutiny: Early robotaxi mishaps—phantom braking and wrong‑way driving in Austin—prompted NHTSA review

Unproven scale: The Austin service is tiny—10–20 vehicles geofenced until broad safety and autonomy are proven

Competitive field: Waymo, Uber‑backed Cruise, and others already service thousands daily across multiple cities.

Delivery woes: Tesla is forecast to report ~13.5% delivery decline in Q2—alongside a nearly 20% EPS drop—neutralizing near-term gains

CEO distractions: Musk’s political activity continues to fuel calls (e.g., Wedbush) for more corporate discipline.

These challenges underscore why cautious voices like UBS and JPMorgan aren’t convinced the breakthrough is enough—yet.

Investment & Institutional Positioning

Even amidst volatility, institutional players are reinforcing optimism. Ark Invest’s Cathie Wood has purchased another 115,400 Tesla shares ahead of Q2 earnings, maintaining Tesla as the largest holding across two core Ark ETFs (ARKK and ARKW)

Meanwhile, after dipping below a trillion-dollar market cap, Tesla again broke the $1 trillion mark—driven by a ~3.5% share-price gain following Ark’s stake increase . That jump not only signals faith in the robotaxi story but cements institutional belief in Tesla’s long-term potential.

 The Road Ahead: Can the Bullish Case Endure?

If Tesla’s bullish thesis holds, what comes next?

Scaling robotaxis: Tesla plans limited rollouts in other U.S. cities by year-end and Cybercab/Cybervan production in 2026–27

Regulatory barometers: Successful safety metrics in Austin, techno‑regulatory approval at federal and state levels will validate or invalidate the model.

FSD subscriptions: Tesla may offer tiered pricing—from $50–$100 monthly—while licensing FSD to third parties, unlocking large recurring‑rev streams

Partnerships: Tesla–Uber or Tesla–Lyft alliances could dramatically boost robotaxi volume and user adoption

Competitive positioning: Ride‑hail incumbents bolstering their own AV tie‑ups, and Tesla’s ability to fend off Waymo and Cruise in non-U.S. markets.

 Bottom Line

Wall Street’s newfound zeal for Tesla isn’t mere hype—it’s deeply rooted in a conclusive shift from promise to execution. Robotaxis began running in Austin; FSD is now a validated product; analyst models are recalibrating accordingly; and institutional investors are doubling down. Meanwhile, unexpected partners like Uber are becoming allies in Tesla’s quest for scale.

That said, hurdles remain—from safety incidents and regulatory scrutiny, to scaling challenges and competitive noise. To fulfill its newfound $500‑plus valuation, Tesla must prove robotaxis can operate profitably at scale—and keep Musk’s distractions in check.

For analysts who have re-rated targets by literally hundreds of dollars, patience will be key. But for now, Tesla is no longer just a vision—it’s a thesis in motion.