Tesla stock skyrockets as first robotaxis hit Austin streets, kicking off the future of self-driving rides

Time of India

5 hours ago

What's driving the Tesla stock price up today?
How did the market react to the Tesla robotaxi launch?
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What exactly is Tesla's new robotaxi service in Austin?
How does Tesla's robotaxi differ from other self-driving cars?
Could Tesla robotaxis become the future of self-driving transportation?
Could Tesla stock go higher from here?
What should Tesla investors watch next?
Expansion : Will Tesla roll the robotaxi service out to more cities this year?
: Will Tesla roll the robotaxi service out to more cities this year? Safety : Any incident could shake investor confidence quickly.
: Any incident could shake investor confidence quickly. Regulation : What decisions will state and federal transportation bodies make?
: What decisions will state and federal transportation bodies make? Monetization : Can Tesla actually generate recurring revenue from this service?
: Can Tesla actually generate recurring revenue from this service? FSD adoption: Will more owners pay for Full Self-Driving if it proves reliable in Austin?
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Tesla stock surged on Monday after the company officially launched its first fleet of robotaxis in Austin, Texas. Shares of TSLA jumped nearly, closing in on, following the rollout of autonomous Model Y vehicles operating within a controlled zone. This move marks a major step toward Tesla's long-term vision of building a driverless ride-hailing network.soared to aroundduring mid-day trading, up from a previous close of, according to Yahoo Finance. That jump added billions to Tesla's market cap in just a few hours, as investors rushed to price in the massive long-term potential of autonomous ride-hailing.The boost in Tesla stock price came as aboutbegan offering rides at a flat rate ofacross central Austin. The rides are fully autonomous and part of a limited test. Passengers can hail these robotaxis using the Tesla app, with no safety drivers onboard. While the routes are currently geofenced, Elon Musk plans to expand to other cities like Los Angeles and San Francisco in the coming months.Wedbush analyst Dan Ives, who took one of the first rides, called it a 'historic moment,' backing a bullish $500 price target. In contrast, UBS analyst Joseph Spak remained cautious, raising his target from $160 to $215, but kept a Sell rating, saying much of the hype is already priced in.Tesla stock responded fast and furious. By mid-day,, trading at, up fromat Friday's close. Volume also spiked, with overchanging hands.Investor excitement came not just from the novelty of the robotaxi launch, but from the broader implications for Tesla's business model. Tesla is aiming to shift from selling cars to offering mobility services, a market that analysts say could be worth hundreds of billions of dollars by 2030.Dan Ives, a well-known Tesla bull and analyst at Wedbush, even took a ride himself. He called the launch a 'historic moment' and said the robotaxi service 'could mark the start of a golden age for Tesla.' He kept his Outperform rating and raised his price target to $500.Not all analysts are as bullish, though. UBS analyst Joseph Spak raised his price target from $147 to $215, but maintained a Sell rating, warning that a lot of optimism is already 'baked into the stock.'In a quiet but bold move, Tesla rolled out its first batch of robotaxis—modified Model Y vehicles—on the streets of Austin over the weekend. According to The Washington Post, the pilot includes 10 to 20 vehicles, operating within a geofenced zone, and charging $4.20 per ride, a figure that appears to nod to Elon Musk's familiar meme-driven humor.Unlike competitors like Waymo or Cruise, which use lidar sensors and remote monitoring, Tesla's robotaxis run entirely on camera-based Full Self-Driving (FSD) software. That's a bold bet, especially with no remote oversight during rides. While this cuts costs and aligns with Tesla's long-held software-first strategy, it also raises concerns about safety and regulation.According to the Washington Post, the National Highway Traffic Safety Administration (NHTSA) is already reviewing the Austin program. Meanwhile, a new Texas law requiring permits for AV services will kick in by September, adding another layer of scrutiny.If successful, Tesla's plan could reshape the company's business model—shifting from selling cars to offering ride-hailing as a service. Elon Musk has stated his goal is to roll outby 2026. Tesla also aims to let private owners add their cars to the robotaxi network, potentially turning idle vehicles into income-generating assets.Still, there are challenges ahead. Scaling the service, winning regulatory approval, and proving consistent safety at scale will be critical. Analysts say if Tesla clears those hurdles, the company could tap into aThat's the billion-dollar question. Theis now testing new resistance levels, and bulls are hoping that the robotaxi launch will be the catalyst that brings in a wave of institutional buying.Elon Musk has promised aof autonomous vehicles for years. If the Austin launch succeeds and Tesla expands robotaxis into other cities like, and, the company's value could multiply. Musk has even claimed that individual Tesla owners will eventually be able to add their cars to the fleet and earn passive income when not in use.But there are risks.The National Highway Traffic Safety Administration (NHTSA) is already reviewing the Austin service, and Texas state regulations requiring robotaxi permits will go into effect by September 2025. Any serious accident or regulatory pushback could stall expansion.Still, Tesla says it plans to deploy hundreds of thousands of robotaxis by 2026, though no official timeline has been published.If you own or are eyeing, here's what to keep an eye on:Tesla stock rose after launching its first robotaxi service in Austin.TSLA stock is currently around $354 after the robotaxi launch.