Tesla Receives First Permit For California Robotaxis; Cantor Upgrades Rating To “Overweight”  

According to a Bloomberg report, Tesla has secured the first of several approvals from California regulators to launch its long-anticipated robotaxi service, laying the groundwork for eventual autonomous operations for the mass public. This development comes more than a month after Tesla designer Franz von Holzhausen announced that Cybercabs would begin rolling out in Austin, Texas, in June.

The California Public Utilities Commission confirmed in an email statement on Tuesday that Tesla was approved for a transportation charter-party carrier permit. This means robotaxis can only ferry employees on a prearranged basis, while the path to a fully operational robotaxi service for the general public remains out on a longer timeline and additional permits. 

Additional color via Bloomberg:

Bloomberg reported last month that Tesla had applied for the permit as it works to launch a promised ride-hailing business, opening a new revenue stream and putting it in competition with the likes of Uber Technologies Inc., Lyft Inc. and Waymo. Musk has said Tesla would roll out driverless ride- hailing in Austin in June and aimed to offer it in California by the end of the year, without offering specific details.

Separately, Tesla shares are trading higher in the early cash session after analysts at Cantor Fitzgerald upgraded their rating to ‘Overweight’ (from Neutral). The upgrade comes after Tesla shares have plunged 43% year-to-date (as of Tuesday’s close) amid concerns over sliding vehicle delivery forecasts for the first quarter.

• “Weak Demand”: Goldman Lowers Tesla Vehicle Delivery Estimate For Quarter 

As well as mounting backlash from deranged Democrats:

• AG Bondi Declares “Swarm Of Violent Attacks” On Tesla As Domestic Terrorism

However… 

• “Buy A Tesla” Searches Spike After Trump Rallies Around Musk & DOGE

Back to Cantor analyst Andres Sheppard’s note earlier. He said, “The recent selloff represents an attractive entry point for investors,” adding that Cantor is bullish on upcoming autonomous taxi-hailing service in Texas. 

Sheppard also referenced a Bloomberg report from November detailing discussions within then-President-elect Donald Trump’s transition team about establishing a federal framework for self-driving vehicles. He stated that such a framework would be “a major beneficiary” for Tesla’s FSD.

However, Sheppard warned that removing tax credits for EV purchases and worsening trade wars could hamper some of Tesla’s growth outlook. 

“We also expect a mild 1Q, driven by lower demand in Europe and increased competition in China, plus some negative sentiment from Elon’s polarizing politics,” Sheppard wrote.