Shares of Tesla (TSLA) experienced a minor decline on Tuesday following the company”s unsuccessful attempts to secure the “Cybercab” trademark for its forthcoming autonomous taxi service. The United States Patent and Trademark Office denied applications for both “Cybercab” and “Robotaxi,” which could hinder Tesla”s marketing efforts and competitive edge in the growing autonomous vehicle market.
In December, Elon Musk and Tesla announced the commencement of testing for their driverless robotaxi service, a project that has garnered significant attention over the past year due to Musk”s enthusiastic endorsements. However, Tesla faces stiff competition from Waymo, a subsidiary of Alphabet, also heavily invested in the autonomous taxi sector. The loss of these trademark names poses challenges for Tesla in establishing a recognizable brand identity for its upcoming vehicle.
Market analysts predict that Tesla will ramp up testing of its Robotaxi and expedite the rollout of driverless taxis as it gears up for the launch of its Cybercab model this year. “The news that Tesla is testing robotaxis without the safety monitors aligns with our expectations that the company is making strides in its testing, consistent with management”s statements during the third quarter earnings call,” remarked Seth Goldstein, a senior equity analyst at Morningstar.
Many experts believe that Tesla”s advancements in the robotaxi sector could lead to a robust revenue stream, potentially surpassing its electric vehicle sales, which have faced a decline over the past two years. Currently, analysts have assigned a Hold consensus rating to Tesla (TSLA) stock, reflecting a mix of 13 Buys, nine Holds, and eight Sells over the past three months. Following a 14.53% increase in its share price over the last year, the average price target for TSLA sits at $393.89 per share, indicating a potential downside risk of 8.5%.
