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Morningstar sees Tesla Cybercab driving strong profits by 2027

Morningstar sees 2027 growth from Cybercab despite massive Waymo lead.

  • Morningstar expects Cybercab’s low costs to support “strong profits” and “strong growth in 2027.”
  • Robotaxis generated under 0.5% of Tesla‘s 2025 revenue but account for over 30% of Morningstar’s valuation.
  • Waymo holds a 580-fold driverless-mile lead, while Tesla’s unsupervised Austin fleet reportedly shrank to around 17 vehicles.

Tesla shares jumped 4% on Wednesday as Morningstar reiterated its $450 fair value estimate, implying a 28% upside from current levels. The firm called Cybercab’s potential deployment a “positive step forward” for autonomous-driving software.

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Morningstar expects the vehicle’s low costs to support “strong profits” and “strong growth in 2027.” Robotaxis generated well under 0.5% of Tesla‘s 2025 revenue but account for over 30% of Morningstar‘s valuation.

Tesla has told employees it is preparing to launch Cybercab publicly in Austin as soon as this month, according to reports. The company plans to begin with employee rides on public roads before adding the vehicles to its Robotaxi service several days later.

However, Waymo holds a commanding lead with over 220 million rider-only miles compared to Tesla‘s roughly 380,000 cumulative driverless miles. That represents about a 580-fold advantage for Waymo.

Meanwhile, Tesla‘s unsupervised Austin fleet reportedly stood at only around 17 vehicles in July, down from approximately 25 in the spring. The company has nevertheless been building Cybercabs at its Texas factory since February, with more than 100 units reportedly spotted by July.

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On Stocktwits, retail sentiment for Tesla was bullish amid a 10% rise in 24-hour message volumes. So far this year, Tesla‘s stock has lagged its “Magnificent Seven” peers, down about 22%.

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