Gary Black Says Tesla Robotaxi Valuation Overstated, Advocates Market Share And TAM-Based Approach Amid Competition From Waymo

Future Fund LLC‘s managing director, Gary Black, thinks a new approach for Tesla Inc.‘s (NASDAQ: TSLA) Robotaxi valuation would work better amid the Robotaxi push in the U.S.

Tesla’s Valuation Needs A TAM And Market Share-Based Approach

Sharing his thoughts on the social media platform X on Wednesday, the investor said that he believes the EV giant will achieve unsupervised autonomy but warns, “so will a handful of others.”

He then said that a total addressable market (TAM) and market share approach is needed to value the company’s Robotaxi rather than “the capacity-driven approach long favored by many,” which overstates its value by three to five times, Black said. 

Waymo’s Business Fleet Opens New Robotaxi Avenues, Zoox Robotaxi Permit

Alphabet Inc.‘s (NASDAQ: GOOGL) (NASDAQ: GOOG) autonomous cab company Waymo recently announced its business fleet targeting enterprises, universities and private events, which could potentially open up new avenues and markets for autonomous cab companies.

Amazon.com Inc.‘s (NASDAQ: AMZN) Robotaxi company, Zoox, on the other hand, sought approval from authorities to deploy its 2,500 driverless pod Robotaxis, which lack any steering wheel and pedals.

What could potentially boost Zoox‘s operations are the proposed revisions to the Federal Motor Vehicle Safety Standards (FMVSS), which President Donald Trump‘s Transportation Secretary Sean Duffy said were written for humans.

Tesla’s Robotaxi Expansion, FSD Lawsuits

Meanwhile, Tesla recently received approval to expand Robotaxi testing operations in Arizona in the presence of an onboard safety driver. The company’s Robotaxi recently expanded to operate on the highways in Austin as it moved the safety operator from the passenger seat to the driver’s seat.

However, the company has been facing lawsuits recently over the FSD or Full Self-Driving technology, a key element in its Robotaxi plans. Recently, over seven Tesla customers sued the company in a court in Beijing after not receiving FSD despite paying for the service.

Tesla scores well on Momentum and Growth metrics, while offering satisfactory Quality, but poor Value. Tesla also offers a favorable price trend in the Short, Medium and Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today!

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