Tesla stock pops 8% as Musk touts 'successful' robotaxi Austin launch
KEY POINTS
Tesla rolled out autonomous robotaxis in Austin, Texas, on Sunday to a limited group of testers.
CEO Elon Musk said in a post on social media platform X that customers were charged a flat fee of $4.20.
The launch puts Tesla head-to-head with Alphabet-backed Waymo, which is already operating a fleet of robotaxis in several cities.
A Tesla Inc. robotaxi on Oltorf Street in Austin, Texas, on June 22, 2025.
Tim Goessman | Bloomberg | Getty Images
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Tesla robotaxis already probed over alleged traffic offenses
STORY: They only hit public roads on Sunday, but Tesla's robotaxis already face a probe over alleged traffic violations. A small fleet of the vehicles has started operating in Austin, Texas. They're offering rides within a limited zone inside the city. But the U.S. National Highway Traffic Safety Administration says it is seeking information on the operation. Watchdogs say they have reviewed online videos purporting to show one robotaxi speeding, and another using the wrong lane. The EV maker did not respond to a request for comment by Reuters. But boss Elon Musk has said the company will be 'super paranoid' about safety. The robotaxis are avoiding bad weather and difficult intersections, and won't carry any children. Separately Monday, Tesla was sued by the estates of three people killed in a crash involving one of the firm's Model S sedans. The suit filed in New Jersey says the deaths resulted from 'defective and unreasonably dangerous design'. It centers on Tesla's so-called 'Full Self-Driving' feature. The plaintiffs say the system gives the impression it is capable of fully autonomous driving, when it actually can't cope with many everyday situations. Tesla has said the feature is meant for 'fully attentive' drivers, who are required to keep their hands on the steering wheel. It didn't respond to a request for comment on the lawsuit. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Texas, Oklahoma and Nevada make changes to lure business amid Delaware's ‘Dexit' concern
CLAYMONT, Del. -- Lawmakers in Texas, Oklahoma and Nevada have recently approved changes aimed at helping their states dip into the lucrative side of corporate litigation that Delaware, with a specialized court and business-friendly laws, has dominated as the world's incorporation capital. Concerned that these changes may lure corporations away from Delaware, thereby causing the small state to lose millions in corporate franchise taxes, Delaware officials have responded with their own changes to solidify their status in the business world. In Texas, which opened a business court last year, there was bipartisan support for legislation diminishing shareholder powers and giving businesses more legal protections against shareholder lawsuits. 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Texas is selling something that they hold out to be better. So it is very much a comparative exercise.' Since 2024, several billion-dollar companies including TripAdvisor and DropBox have relocated to Nevada. More than a dozen others, including the AMC theater chain and video game developer Roblox Corporation, have announced plans to incorporate there this year. Latin American e-commerce giant MercadoLibre filed a request for shareholders to approve a Texas relocation in April, citing Delaware's 'less predictable' decision-making process — a common thought among exiting companies. Amid concerns about more companies reincorporating elsewhere in a so-called 'Dexit,' Delaware passed its own legislation to help protect its status as the corporate capital, limiting shareholders' access to records and increasing protections for leadership. Opposition dubbed it 'the Billionaire's Bill.' 'Ultimately, I think the damage is done because businesses successfully undermined shareholder rights in Delaware,' said Corey Frayer, director of investor protection at Consumer Federation of America, who argues that the Delaware bill was a rash acquiescence to 'Dexit' concerns. However, some business law experts, like Ahdieh, say the average shareholder is focused on increasing their returns and does not care about shareholder power or where the company is incorporated. Delaware Gov. Matt Meyer has vowed to win back companies that leave, arguing his state's experience 'beats going to Vegas and rolling the dice.' Companies flock to Delaware for its well-respected Court of Chancery, a sophisticated and separate forum focusing on equity, corporate and business law. This incorporation machine generates $2.2 billion annually, about one-third of the state's operating budget. There is comfort in working in the familiarity of Delaware law, said Ahdieh, but that predictability has come into question in the last decade as corporate leaders grew unhappy over losing precedent-setting court decisions governing corporate conflicts of interest. Widener University Commonwealth law school professor Christian Johnson acknowledged a shift in Delaware but said reincorporating elsewhere might be 'a bit of an overreaction.' Although a few big-name companies have moved, there are still more than 2 million legal entities incorporated in Delaware, including two-thirds of the Fortune 500. Statutes in Texas and Nevada may appear more flexible, but they have not been extensively tested, and their courts are not as experienced working with the larger entities that favor Delaware, Johnson said. In May, Texas Gov. Greg Abbott signed legislation providing greater securities for corporate officers and adding restrictions to shareholder records requests. 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Analysis-Why Tesla's robotaxi launch was the easy part
By Rachael Levy, Norihiko Shirouzu and Abhirup Roy (Reuters) -Tesla finally has a robotaxi. Now comes the hard part. The electric-vehicle maker deployed its first-ever driverless cabs in Austin, Texas, on Sunday in a small-scale test of carefully monitored Model Y vehicles. Next, the company faces the steep challenge of executing on CEO Elon Musk's ambition to refine the software and upload it to millions of Teslas within a year or so. Such a rapid expansion will prove extremely difficult, about a dozen industry analysts and autonomous-vehicle technology experts told Reuters. These observers expressed a range of views about Tesla's prospects but all cautioned against assuming a light-speed robotaxi rollout. Some pointed to advantages Tesla might exploit to overtake rivals including Alphabet's Waymo and a host of Chinese auto and tech companies. Tesla has mass-manufacturing capacity, and it pioneered remote software updates it can use for self-driving upgrades. The automaker also does not use sensors such as radar and lidar like Waymo and most rivals; instead, it depends solely on cameras and artificial intelligence. 'A rollout could be really quick. If the software works, Tesla robotaxi could drive any road in the world,' said Seth Goldstein, a Morningstar senior equity analyst, while cautioning that Tesla is still 'testing the product.' In Austin, Tesla launched a choreographed experiment involving maybe a dozen cars, operating in limited geography, with safety monitors in the front passenger seat; remote 'teleoperators'; plans to avoid bad weather; and hand-picked pro-Tesla influencers as passengers. For years, Musk has said Tesla would soon operate its own autonomous ride-hailing service and also turn any Tesla, new or used, into a cash-generating robotaxi for its customers. That will be 'orders of magnitude' more difficult than testing in Austin, said Bryant Walker Smith, a University of South Carolina law professor focused on autonomous-driving regulation. 'It's like announcing that, 'I'm going to Mars' and then, you know, going to Cleveland,' Smith said. Musk has said Tesla will reach Mars, in that metaphor, quite quickly: "I predict that there will be millions of Teslas operating fully autonomously in the second half of next year," he said in April. Musk and Tesla did not respond to requests for comment. Tesla shares ended 8.2% higher at $348.68 on Monday on investor enthusiasm over the robotaxi launch. Given Tesla's AI-dependent approach, its challenge will be machine-training robotaxis to handle complex traffic 'edge cases,' said Philip Koopman, a Carnegie Mellon University computer-engineering professor and autonomous-technology expert. That could take many years. 'Look, how long has it taken Waymo?' Koopman asked. 'There's no reason to believe Tesla will be any faster.' LONG SLOG Waymo's self-driving efforts date back to 2009, when Google started its self-driving car project. An egg-shaped prototype took its first ride on public streets in 2015 – also in Austin. Waymo has taken since then to build a 1,500-robotaxi fleet in select cities. A Waymo spokesperson said it plans to add 2,000 more vehicles by the end of 2026. Some analysts believe Tesla can expand faster, in part because Waymo has helped pave the way by overcoming regulatory and technical challenges. 'Waymo and other pioneers have helped to drive regulatory change and have made riders, pedestrians and other road users aware of autonomous vehicles,' said Paul Miller, an analyst at market-research firm Forrester. Being a mass-manufacturer also helps Tesla, Miller said. Waymo buys Jaguar I-PACE SUVs and outfits them with more expensive sensors and technology than Tesla integrates into its vehicles. Waymo declined to comment on Tesla's robotaxi-expansion potential. The company's former CEO, John Krafcik, remains skeptical. The precautions Tesla employed in Austin reveal it does not have confidence its technology is safe at scale, Krafcik said. 'And they shouldn't,' he said. 'It's not as safe as it needs to be, and falls well short of the robust approach and well-documented safety that Waymo has demonstrated.' 'WRONG SIDE' OF THE ROAD Tesla's go-fast strategy could actually slow its progress and that of the autonomous-vehicle industry if it undermines public trust, some analysts said. Tesla has historically faced legal and regulatory trouble involving its Full Self-Driving (FSD) driver-assistance system, which is not fully autonomous. In one recent federal safety probe into Tesla, investigators are examining FSD's role in crashes – some fatal – involving rain or other inclement weather that interferes with the system's cameras. Before the Austin test, Musk posted on his social-media platform, X, that the robotaxis' technology would differ little from any Tesla, aside from a software update: 'These are unmodified Tesla cars coming straight from the factory, meaning that every Tesla,' he wrote, 'is capable of unsupervised self-driving!' The automaker invited Tesla-friendly influencers to take its first robotaxi rides, and they generally cheered the experience. One social-media video posted by a robotaxi passenger, however, showed the vehicle proceeding through a four-lane intersection with a traffic light – and into the wrong lane, for about six seconds. No oncoming traffic was in the lane at the time. 'Obviously we're on the wrong side of the double-yellow line here,' said the passenger, Rob Maurer, in a video narration of the experience he posted on X, noting that he felt safe but that the car behind him honked at the 'confusing maneuver." Maurer did not respond to requests for comment. Reuters verified the location of the video by matching the surrounding buildings, business and street signs to the intersection of West Riverside Drive and Barton Springs Road in Austin. Separately, a Reuters witness followed another Tesla robotaxi and measured its speed as it traveled at between 40 and 45 mph in a 35 mph zone on First Street, adjacent to the Texas School for the Deaf. A sign warned to watch for deaf pedestrians.
