We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Tesla Stock Worth Buying Now on Robotaxi & FSD Progress?
Read MoreHide Full Article
Key Takeaways
Tesla's Texas robotaxi fleet has surpassed Waymo's, while unsupervised miles surged eightfold to nearly 2M.
Tesla's paid FSD customer base jumped 67% to 1.74 million, but a critical EU-wide regulatory vote looms.
Improving margins and positive FCF are promising, but high costs and execution risks are still concerning.
Electric vehicle (EV) and tech giant Tesla (TSLA - Free Report) is gaining the spotlight for the right reasons. Tesla CEO Elon Musk has pinned the company’s next growth chapter on artificial intelligence, autonomous vehicles, robotaxis and robotics, and the recent developments show progress on the self-driving technology and robotaxi fronts.
Tesla has edged past Alphabet's (GOOGL - Free Report) Waymo on robotaxi fleet size in Texas. According to Teslarati, Texas Department of Motor Vehicles records as of Nov. 10 show 1,302 vehicles registered under Tesla Robotaxi, LLC, narrowly ahead of Waymo's 1,297. When Texas' autonomous vehicle registry became publicly available in late May 2026, Tesla had just 42 vehicles listed, compared with several hundred for Waymo. Its authorized fleet has since grown more than 30-fold, reflecting substantial Model Y additions and a growing Cybercab presence.
In another development, Tesla won Finland’s nod for its Full Self-Driving (FSD) technology. With that, Finland has become the 11th European Union (EU) country to grant provisional approval for the system, adding momentum ahead of an EU-wide vote expected next month.
Amid all this, merger talks between SpaceX (SPCX - Free Report) and Tesla are actively progressing, with many reports expecting the announcement to be made next month only. Both companies are pivoting toward AI, and consolidation promises meaningful synergies.Terafab, a joint project between Tesla and SpaceX, aims to produce the advanced AI chips Tesla needs for Optimus and its wider AI ambitions.
Over the past five trading sessions, the stock has jumped more than 15%. But year to date, Tesla shares are down roughly 12%. Given the recent progress on robotaxi and FSD domains, should you consider buying Tesla stock? Or does the stock still have enough to prove before jumping to invest in it? Let’s discuss.
Image Source: Zacks Investment Research
Beneath the Headline Progress in Robotaxis
Tesla began deploying Cybercabs in Austin in September 2026. On the third-quarter earnings call, the company highlighted that the cumulative unsupervised robotaxi miles (including Model Y and Cybercab) rose eightfold sequentially to nearly 2 million. Management expects robotaxi operations to contribute more meaningfully to revenues from next year.
Image Source: Tesla, Inc.
The Cybercab is a significant milestone for Tesla and the fact that it has surpassed Waymo’s fleet in Texas is also encouraging. However, registered vehicles are not necessarily active robotaxis carrying paying passengers. A larger fleet does not automatically translate into more rides, higher utilization or better economics. Also, Alphabet’s Waymo operates beyond Texas, making this comparison particularly narrow. Tesla still needs to demonstrate strong vehicle utilization, sustainable operating economics and successful expansion into additional markets.
FSD Adoption Aiding TSLA But Bigger Test Ahead
The regulatory push matters to Tesla’s effort to build recurring software revenues beyond vehicle sales. Tesla’s paid FSD customer base rose 67% year over year to 1.74 million in the third quarter of 2026. More than 75% of new vehicle deliveries in North America included paid FSD subscriptions at delivery. Increasing subscription adoption should strengthen Tesla's software revenues.Tesla now has approvals in 11 EU countries and 19 countries worldwide.
Tesla still needs support at the EU level. An approval requires a qualified majority— at least 15 member states representing 65% of the bloc’s population.
The EU’s Technical Committee for Motor Vehicles is expected to decide in December. If approved, the decision could apply across the bloc in about three weeks. A rejection would invalidate the national approvals already granted, making the vote critical to Tesla’s European plans.
TSLA Narrative is Improving But Not a Buy Yet
Tesla’s vehicle demand and margins are moving in the right direction. The company delivered 486,532 vehicles in the last reported quarter, its second straight quarter above 480,000 units. It also posted its highest passenger vehicle order backlog in four years. Automotive gross margin improved to 18.5% from 17% a year earlier. The energy business is also performing well. Musk said Megapack supply for 2027 is almost sold out.
Free cash flow swung to positive $1.53 billion in the third quarter from negative $1.09 billion in the second quarter of 2026. Management also trimmed 2026 capex guidance to $20 billion from $25 billion and secured up to $30 billion in borrowing capacity, with no draws planned this year. And the AI roadmap now has tangible milestones behind it.
The Zacks Consensus Estimate for Tesla’s EPS has moved north over the past 30 days.
Image Source: Zacks Investment Research
None of this makes Tesla a risk-free story. Operating expenses remain high, supply chain challenges persist, and operating profits are expected to decline year over year in the coming quarters as costs rise to fund the next growth cycle. Robotaxi and Optimus revenues still depend on execution and regulatory approvals.
While this might not be the time to buy TSLA stock outright, the stock should be on your watchlist. For investors with a long horizon, any dips from here could look more like opportunities. Tesla stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
Image: Shutterstock
Is Tesla Stock Worth Buying Now on Robotaxi & FSD Progress?
Key Takeaways
Electric vehicle (EV) and tech giant Tesla (TSLA - Free Report) is gaining the spotlight for the right reasons. Tesla CEO Elon Musk has pinned the company’s next growth chapter on artificial intelligence, autonomous vehicles, robotaxis and robotics, and the recent developments show progress on the self-driving technology and robotaxi fronts.
Tesla has edged past Alphabet's (GOOGL - Free Report) Waymo on robotaxi fleet size in Texas. According to Teslarati, Texas Department of Motor Vehicles records as of Nov. 10 show 1,302 vehicles registered under Tesla Robotaxi, LLC, narrowly ahead of Waymo's 1,297. When Texas' autonomous vehicle registry became publicly available in late May 2026, Tesla had just 42 vehicles listed, compared with several hundred for Waymo. Its authorized fleet has since grown more than 30-fold, reflecting substantial Model Y additions and a growing Cybercab presence.
In another development, Tesla won Finland’s nod for its Full Self-Driving (FSD) technology. With that, Finland has become the 11th European Union (EU) country to grant provisional approval for the system, adding momentum ahead of an EU-wide vote expected next month.
Amid all this, merger talks between SpaceX (SPCX - Free Report) and Tesla are actively progressing, with many reports expecting the announcement to be made next month only. Both companies are pivoting toward AI, and consolidation promises meaningful synergies.Terafab, a joint project between Tesla and SpaceX, aims to produce the advanced AI chips Tesla needs for Optimus and its wider AI ambitions.
Over the past five trading sessions, the stock has jumped more than 15%. But year to date, Tesla shares are down roughly 12%. Given the recent progress on robotaxi and FSD domains, should you consider buying Tesla stock? Or does the stock still have enough to prove before jumping to invest in it? Let’s discuss.
Image Source: Zacks Investment Research
Beneath the Headline Progress in Robotaxis
Tesla began deploying Cybercabs in Austin in September 2026. On the third-quarter earnings call, the company highlighted that the cumulative unsupervised robotaxi miles (including Model Y and Cybercab) rose eightfold sequentially to nearly 2 million. Management expects robotaxi operations to contribute more meaningfully to revenues from next year.
Image Source: Tesla, Inc.
The Cybercab is a significant milestone for Tesla and the fact that it has surpassed Waymo’s fleet in Texas is also encouraging. However, registered vehicles are not necessarily active robotaxis carrying paying passengers. A larger fleet does not automatically translate into more rides, higher utilization or better economics. Also, Alphabet’s Waymo operates beyond Texas, making this comparison particularly narrow. Tesla still needs to demonstrate strong vehicle utilization, sustainable operating economics and successful expansion into additional markets.
FSD Adoption Aiding TSLA But Bigger Test Ahead
The regulatory push matters to Tesla’s effort to build recurring software revenues beyond vehicle sales. Tesla’s paid FSD customer base rose 67% year over year to 1.74 million in the third quarter of 2026. More than 75% of new vehicle deliveries in North America included paid FSD subscriptions at delivery. Increasing subscription adoption should strengthen Tesla's software revenues.Tesla now has approvals in 11 EU countries and 19 countries worldwide.
Tesla still needs support at the EU level. An approval requires a qualified majority— at least 15 member states representing 65% of the bloc’s population.
The EU’s Technical Committee for Motor Vehicles is expected to decide in December. If approved, the decision could apply across the bloc in about three weeks. A rejection would invalidate the national approvals already granted, making the vote critical to Tesla’s European plans.
TSLA Narrative is Improving But Not a Buy Yet
Tesla’s vehicle demand and margins are moving in the right direction. The company delivered 486,532 vehicles in the last reported quarter, its second straight quarter above 480,000 units. It also posted its highest passenger vehicle order backlog in four years. Automotive gross margin improved to 18.5% from 17% a year earlier. The energy business is also performing well. Musk said Megapack supply for 2027 is almost sold out.
Free cash flow swung to positive $1.53 billion in the third quarter from negative $1.09 billion in the second quarter of 2026. Management also trimmed 2026 capex guidance to $20 billion from $25 billion and secured up to $30 billion in borrowing capacity, with no draws planned this year. And the AI roadmap now has tangible milestones behind it.
The Zacks Consensus Estimate for Tesla’s EPS has moved north over the past 30 days.
Image Source: Zacks Investment Research
None of this makes Tesla a risk-free story. Operating expenses remain high, supply chain challenges persist, and operating profits are expected to decline year over year in the coming quarters as costs rise to fund the next growth cycle. Robotaxi and Optimus revenues still depend on execution and regulatory approvals.
While this might not be the time to buy TSLA stock outright, the stock should be on your watchlist. For investors with a long horizon, any dips from here could look more like opportunities. Tesla stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.