Tesla’s market cap exceeds $1 trillion even though the robotaxi rollout timeline is uncertain

Tesla (NASDAQ:TSLA) gained 1.6% in early trading on Tuesday as the electric vehicle is showing little trouble in holding on to its $1 trillion market cap valuation.

The biggest buzz over Tesla (TSLA) is that it may have an easier time with approvals for its autonomous driving fleet under a Donald Trump Administration that is very friendly with Elon Musk.

However, Morgan Stanley warned that investors may be a little too confident on the regulatory process. Analyst Adam Jonas said the firm does not implicitly assume mass deployment of autonomous vehicles in its Tesla Mobility forecast until the mid-2030s. “While a reassessment of self-driving policies at a national level could be inevitable in our view, we believe Tesla still faces significant hurdles to overcome in terms of technology, testing and permitting required for commercialization,” he noted.

Jonas and team reminded investors that Tesla (TSLA) is still likely to see U.S. states and metropolitan areas have the greatest say on the final deployment of an autonomous fleet.

For the moment, Morgan Stanley values Tesla Mobility (rideshare) at just over $50 per share in its sum-of-the-parts analysis on the stock. Based on Tesla’s (TSLA) recent share price rally, investors may be ascribing a higher current valuation.

Looking ahead. Tesla (TSLA) expects to make the full self-driving technology available on its popular Model 3 and Model Y vehicles in Texas and California in 2025. Cybercabs at a price tag of under $30,000 are expected to become available in 2026, according to Elon Musk.

Shares of Tesla (TSLA) were up 1.7% to $344.42 in early morning trading on Tuesday. Short interest on TSLA has evaporated to just 2.4% of the total float.