Tesla (TSLA 2.60%) stock is on the rise once again. After a difficult start to 2026, Tesla shares have rebounded strongly, spiking roughly 30% in value over the past 30 days.
But here's the thing: The run could just be getting started. That's because Tesla is now targeting perhaps its biggest growth opportunity in its multidecade history.
NASDAQ: TSLA
Key Data Points
Tesla should be a very different company by 2031
Many everyday consumers still think of Tesla as an auto manufacturing business. And that's still true for the most part. Tesla sells many of the world's most popular vehicles, and by most metrics, is one of the largest automakers in the world.
But in recent years, Tesla's auto sales have actually been on the decline. The company faces an increasingly stale product lineup with mounting global competition. What has Tesla done about its flagging auto sales? Surprisingly little. The company has given minor facelifts to its existing lineup and lowered prices. But the company's CEO, Elon Musk, doesn't seem too interested in making sure Tesla remains the top electric vehicle (EV) maker worldwide. Instead, he has his sights on an even bigger opportunity.
Image source: Tesla.
According to Cathie Wood -- the CEO of Ark Invest, a major Tesla shareholder -- the global robotaxi market will eventually be worth $5 trillion to $10 trillion. Many analysts aren't as bullish as Wood. Others see a similar potential, but believe it will be years or even decades until this full potential is realized. But her bullishness isn't coming out of nowhere.
According to a new report from global consultancy McKinsey & Co., the robotaxi industry is set to take off much earlier than many laypeople realize. "Autonomous-vehicle technology is developing rapidly," the report stresses. "[T]he global rollout of robo-taxis is now expected to become reality at a large scale in 2030."
With a valuation well above $1 trillion, Tesla is uniquely positioned to attack the global robotaxi market aggressively. Its existing production capacity -- which at first appears to be a weakness when compared with its declining auto sales -- becomes a huge advantage for robotaxis. Indeed, Tesla has already begun production of its Cybercab model, a low-priced vehicle designed explicitly for the robotaxi market.
We're still a few years away from the robotaxi market really taking off, at least according to expert predictions. But with pilot services now active in several key metro areas, existing worldwide auto manufacturing capabilities, heavy historical investments in artificial intelligence, and self-driving technology, it's hard not to see Tesla taking a giant share of this emerging market.
If you agree with Wood's estimate, which calls for the robotaxi market to be worth $5 trillion to $10 trillion globally, Tesla stock immediately becomes one of the best ways to profit from the transition to autonomous vehicles. McKinsey & Co. sees robotaxis scaling globally by 2030, potentially making 2031 too late to buy into Tesla's robotaxi potential.
