Tesla Shares Slip After USPTO Blocks Cybercab, Robotaxi Name

  • Tesla shares dipped after the United States Patent and Trademark Office denied trademark applications for “Cybercab” and “Robotaxi.”
  • The company began testing a driverless robotaxi service in mid-December and is advancing tests without safety monitors.
  • Loss of the trademarks removes key naming and marketing options for the planned autonomous cab service.
  • Morningstar analyst Seth Goldstein said the testing progress aligns with management comments and expectations.
  • Analysts hold a consensus rating of Hold on TSLA with an average price target of $393.89, implying about 8.5% downside after a 14.53% rally over the past year.

Tesla saw its shares slip slightly on Tuesday after the United States Patent and Trademark Office denied trademark applications for “Cybercab” and “Robotaxi,” names the company had sought for its upcoming autonomous taxi. The company began testing its driverless robotaxi service in mid-December, a program that has drawn intense focus from management and investors.

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The denial bars Tesla from using the two names as official marks, eliminating potential branding and marketing advantages for the planned vehicle. Competing firms such as Waymo remain significant players in the autonomous taxi market, increasing the importance of clear branding for consumer recognition.

Wall Street analysts expect Tesla to intensify robotaxi testing and to move toward faster deployment as it prepares to launch the Cybercab model this year. Many analysts note that successful robotaxi operations could become a new revenue stream that may outsize recent electric vehicle sales, which have declined over the past two years.

“The news that Tesla is testing robotaxis without the safety monitors is in line with our expectations that the company ⁠is making progress in its testing, in ​line with management’s statements during the third ​quarter earnings call,” said Seth Goldstein, senior equity analyst at Morningstar.

Analysts maintain a Hold consensus on TSLA, based on 13 Buys, nine Holds, and eight Sells assigned in the past three months. After a 14.53% rally in the stock over the past year, the average price target of $393.89 per share implies roughly an 8.5% downside from current levels.

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