Tesla Robotaxi Launch: Goldman Sachs Lists 3 Reasons Why Cybercab Scaling Will Be Slow

Goldman Sachs has raised concerns about the near-term prospects of Tesla’s newly launched robotaxi service, Cybercab, despite investor enthusiasm around the rollout. 

In a research note, analyst Mark Delaney maintained a ‘Neutral’ rating on Tesla and reiterated a 12-month price target of $285, suggesting the market may be overestimating how quickly the service can expand.

Delaney flagged three reasons why scaling the Cybercab fleet will likely be slow in the near term:

1. Tesla's reliance on a city-specific tech stack in Austin

2. The presence of a Tesla employee in the passenger seat

3. Navigation/lane issues already reported during day-one usage

Goldman added that the stock already reflected some degree of optimism around autonomous vehicle profits, potentially limiting further upside. 

Tesla shares closed down 2.4% at $340.47 on Tuesday, slipping another 0.7% to $338.2 in after-hours trading.

Delaney said that Tesla’s market capitalization surged by over $90 billion after the robotaxi launch — an amount roughly twice the valuation of Waymo, Alphabet’s robotaxi subsidiary, which he views as further along in commercial deployment.

The analyst also warned that growing competition in China could hurt Tesla’s profit margins. Many local carmakers are now offering hands-free driving features either as standard or at a low cost (even in regular vehicles), which could drive down profits if AI-powered autonomous tech becomes widely available.

UBS analyst Joseph Spak echoed valuation concerns, raising Tesla’s price target to $215 from $190 but kept a ‘Sell’ rating, citing that the robotaxi opportunity is already priced in, with the segment valued at $99 per share. 

Wedbush analyst Dan Ives took the opposite view, calling the launch the start of a “golden age” and reiterating a $500 price target and ‘Outperform’ rating.

The service began on Sunday and uses Model Y SUVs equipped with Tesla’s latest Full Self-Driving (FSD) Unsupervised software and hardware. 

Although no serious incidents were reported, the National Highway Traffic Safety Administration (NHTSA) is reviewing viral clips, including footage of a Tesla traveling the wrong way down a street and another braking abruptly near stationary police vehicles. One user also reported a vehicle veering into an unoccupied oncoming lane.

Tesla’s stock has declined 10.2% so far in 2025.

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