Tesla aims to start its robotaxi service with a company-owned fleet backed up by human teleoperators for safety, Deutsche Bank said in a note after a meeting with the company's head of investor relations, Reuters reports.

The electric vehicle maker still is shooting for a launch of its cheaper vehicle in the first half of next year and other models later in the year.

Tesla plans to launch robotaxi service in California and Texas next year.

"Tesla believes it would be reasonable to assume some type of teleoperator would be needed at least initially for safety/redundancy purposes," the bank said in the note. "Management intends to start off entirely with the company-owned fleet" and to use an internally developed ride-hail app, it said.

Deutsche Bank also raised its price target for Tesla shares to $370 from $295. Tesla shares were trading down nearly 1% at $386.04 on Monday.