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Tesla Stock Soars 10% Following Launch of Robotaxi Service in Austin
Tesla shares surged 10% on Monday after the company officially launched its long-anticipated robotaxi service in Austin, Texas—an initiative CEO Elon Musk has long promoted as critical to Tesla’s future growth.
On Sunday, Tesla deployed a small fleet of fully self-driving vehicles, marking the first time the company has offered paid rides without human drivers. The rides, priced at a flat $4.20, are currently limited to a controlled area within the city and include a front-seat “safety monitor” as a precaution.
This pilot marks a major milestone for Tesla as it shifts focus from mass-market EV production to autonomous vehicles and robotics amid slowing demand for its existing models and intensifying competition from Chinese automakers.
“It was a comfortable, safe, and personalized experience,” said Wedbush Securities analyst Dan Ives, who took several robotaxi rides. He noted the vehicle’s ability to navigate tight, complex road conditions with skill and caution.
Social media influencers on X (formerly Twitter) also shared videos showing Tesla’s robotaxis navigating city streets, adjusting for pedestrians and oncoming traffic in real-time.
Despite the excitement, experts caution that this is just an early test, involving about 10 vehicles in a tightly managed environment. Tesla and other autonomous vehicle companies—including Google-backed Waymo—have faced scrutiny, federal probes, and recalls tied to safety incidents.
Critics remain skeptical of Tesla’s camera-only, AI-driven system, which lacks supplemental sensors like lidar or radar. They argue that environmental factors such as rain, fog, and glare may compromise performance.
Complicating matters further, a new Texas law taking effect September 1 will require companies to obtain state permits for autonomous vehicle operations—signaling growing bipartisan calls for stricter oversight.
If Monday’s stock rally holds, Tesla stands to gain nearly $100 billion in market capitalization, bringing it close to a $1 trillion valuation. Despite the jump, Tesla shares are still down about 12% year-to-date, weighed by concerns over weakening EV demand and political backlash stemming from Musk’s outspoken support for Donald Trump and far-right figures in Europe.
Nonetheless, Tesla continues to trade at a lofty 149 times forward earnings—far exceeding industry peers like Ford (9.3) and tech heavyweights like Microsoft (31.6)—reflecting high investor expectations tied to its autonomous ambitions.
