Tesla reshapes industries with robotaxis and energy storage innovations

Deutsche Bank analyst Edison Yu has reinstated coverage of Tesla with a Buy rating and a price target of $295, highlighting the company's potential to transform various industries, particularly with its advancements in robotaxis and humanoid robotics. The analyst emphasized that Tesla should be viewed as a technology platform rather than just an automaker, given its significant lead in battery-powered electric vehicles and autonomous driving capabilities. Despite recent challenges in deliveries and margins, Yu believes these are temporary setbacks, with new models and updates on the horizon. Yu's analysis points to Tesla's four major business units: automotive, energy storage, humanoid robots, and robotaxis, which he considers to be part of a larger trend in technology and innovation. The upcoming Robotaxi Day on October 10 is seen as a pivotal moment for the company, potentially unveiling a lower-cost model and enhancing revenue streams through OEM licensing of Full Self-Driving (FSD) technology. The analyst also noted that Tesla Energy is positioned as a significant growth area with strong profit margins. The Optimus humanoid robot is expected to address labor shortages in the U.S. and Europe, as well as demographic challenges in Asia. Yu's valuation breakdown estimates the automotive segment at $195 per share, energy at $53, humanoid robots at $22, and robotaxis at $24, culminating in a total valuation of $295 per share. Overall, Tesla's innovative approach and strategic positioning in multiple sectors suggest a promising future, despite current market fluctuations. The company's focus on technology and automation could redefine industry standards and create new revenue opportunities in the coming years.