Tesla Bull Gary Black Says Robotaxi ‘Experiment’ In Austin With ’10-20′ Cars Does Not Warrant Billions In Valuation Potential – Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)

Future Fund’s noted investor, Gary Black, has said that Tesla Inc.’s TSLA June launch of 10-20 robotaxis in Austin cannot translate to billions of dollars in valuation potential.

What Happened: Responding to a reply made by a user on his earlier post, Black took to the social media platform X on Thursday to offer his views on why the investor called Tesla’s robotaxi launch a “non-event.”

I’m not criticizing $TSLA ‘s “toe in the water” go-slow approach to Robotaxi. One mishap or injury in Austin and the MSM will be all over this – particularly with no TSLA PR effort.

Investors need to recognize there is a huge difference in valuation between $GOOGL and $TSLA:… https://t.co/2DWwOPupfR

— Gary Black (@garyblack00) April 24, 2025

Black reiterated that he wasn’t criticizing the company for its “toe in the water” approach to the Robotaxi’s launch. “One mishap or injury in Austin and the MSM will be all over this – particularly with no TSLA PR effort.” He said.

However, the investor pointed out the difference in valuation between Alphabet Inc. GOOG GOOGL and Tesla.

“GOOGL trades at 17.5x 2025 Non-GAAP EPS, while TSLA trades at 114x 2025 Non-GAAP EPS. TSLA’s robotaxi test with 10-20 cars employing remote drivers to some extent to ensure no mishaps does not YET warrant $ billions of robotaxi valuation potential.” Black said in the post.

There could be an increase in his $310 price target for Tesla if the Austin robotaxi launch progresses smoothly, and if the platform can be expanded to other locations, he said, but noted that investors’ estimates of “$500B-$1.0T” is absurd for a concept that isn’t proven successful yet.

Why It Matters: The investor’s comments come in as Waymo has announced it reached the 250,000 weekly paid rides milestone across 4 cities in the U.S., like Austin, Los Angeles, Phoenix and San Francisco.

Tesla has also rolled out a Supervised FSD ride-hailing service for its employees in Austin and San Francisco. The company says it has already completed over 1,500 trips.

The development of the autonomous ride-hailing sector has also been handed a boost why the Trump administration as it announced it was easing regulatory hurdles for U.S. autonomous vehicle companies.

Price Action: TSLA stock currently trades for $259.51 on the NASDAQ, according to Benzinga Pro data.

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