Shares in Tesla (TSLA) stock saw a slight slip downwards on Tuesday after the company struck out on the “Cybercab” naming trademark for its upcoming autonomous cab. The company missed out on both Cybercab and “Robotaxi” as the official vehicle name, with both applications being denied by the United States Patent and Trademark Office.
In mid-December, Elon Musk and Tesla announced they had begun testing their driverless robotaxi service. The project has been one of immense focus for the company in the past year, thanks to Musk’s public praise and promises. However, Alphabet-owned Waymo is another big competitor in the autonomous taxi ring. Losing out on the two trademark names for its auto taxi service results in missed marketing opportunities that could’ve steered TSLA further ahead.
Furthermore, Wall Street analysts are betting that Tesla will intensify testing of the Robotaxi and rapidly deploy driverless taxis as it prepares to launch its Cybercab model this year. “The news that Tesla is testing robotaxis without the safety monitors is in line with our expectations that the company is making progress in its testing, in line with management’s statements during the third quarter earnings call,” said Seth Goldstein, senior equity analyst at Morningstar. Many analysts suggest that Tesla’s work in robotaxis could provide a new, stronger revenue than its EV sales, which have declined in the past two years.
At the present time, analysts have a Hold consensus rating on Tesla (TSLA) stock based on 13 Buys, nine Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. After a 14.53% rally in its share price over the past year, the average TSLA price target of $393.89 per share implies 8.5% downside risk.