Tesla (TSLA) stock rose as much as 10% on Monday following a successful Robotaxi launch in Austin, Texas on Sunday. The EV maker and now rideshare service provider sent out a small fleet of self-driving taxis in the city. It is the first time the service has been tested publicly without human drivers, and the rides were offered for a flat fee of $4.20 in a limited zone.
“It was a comfortable, safe, and personalized experience,” said Wedbush Securities analyst Dan Ives, who took multiple robotaxi rides on Sunday and has long been a Tesla investor bull. “There was a moment where we drove up a narrow road going up a hill with cars parked on both sides, with oncoming traffic and people opening their car doors into the road, and the robotaxi masterfully maneuvered with patience and safety.”
More about the Tesla Robotaxi
Tesla’s Robotaxi service in Austin operates daily from 6:00 a.m. to 12:00 a.m., though bad weather conditions may limit or prevent the service. Tesla has positioned safety monitors – and these are actual Tesla employees – in the front passenger seats during commercial operations, which represents quite an unusual approach for autonomous vehicle safety standards.
The initial fleet consisted of about 10 to 20 Model Y SUVs operating in a narrowly defined area of South Austin. Early-access invitations went out to vetted customers who could then download and use the new Robotaxi app. Ed Niedermeyer observed these Tesla Robotaxis leaving a depot near Oltorf Street, with safety monitors positioned in passenger seats rather than behind the wheel.
Furthermore, the service won’t use in-cabin cameras by default, and it will only activate these during emergencies or when riders request support. At least one rider needed assistance from Tesla’s remote support team during their ride, though the company didn’t disclose the specific issue.
Also Read: Tesla (TSLA) Falls 21% YTD: When Will it Return to the Green?
Robotaxi Impact on Tesla (TSLA) Stock
Tesla’s shares are extremely volatile and have had 133 moves greater than 2.5% over the last year. In that context, today’s move indicates the market considers this news meaningful; however, some analysts suggest it won’t bring a monster rise or fall in TSLA stock. On the flip side, the launch has been highly anticipated for Tesla and TSLA investors. Therefore, a successful first week of Robotaxis could drive momentum behind the stock and send it back towards $400. At press time, TSLA is trading at $349, still down over 10% YTD due to poor quarterly results and Elon Musk’s political moves.
The Austin launch represents Tesla’s boldest autonomous driving bet to date, but significant challenges remain ahead. With safety monitors still required and a limited operational scope, the service faces ongoing regulatory scrutiny. Tesla stock investors are waiting for clearer signals about scalability as the company navigates the complex transition to commercial autonomous operations, with Elon Musk’s autonomous fleet vision still evolving beyond this initial pilot program.
