Tesla stock wobbles as the company rolls out early robotaxi invites
Tesla shares wavered on Friday as investors eyed the company's move toward its highly anticipated robotaxi event.
The stock rose as much as 3% to $332.36 before paring gains and falling by about 1%. The stock is down 21% in 2025.
Tesla is poised to enter the self-driving car market by launching its robotaxi fleet in Austin, Texas, with early invites for the service rolling out Friday morning.
The electric vehicle maker has been preparing for the event for months, keeping investors on edge as they await a fresh catalyst for the stock to gain amid falling vehicle sales in 2025.
Influencers and popular Tesla personalities on X shared screenshots of emails they received Friday morning, revealing their invitations to test Tesla's self-driving vehicles.
"As an Early Access rider, you can be among the first to use our new Robotaxi App and experience an autonomous ride within our geofenced area in Austin," an invitation posted on X reads. "Through this exclusive preview, you'll have the opportunity to provide valuable feedback on our Robotaxi service."
Wedbush Securities analyst Dan Ives, a well known Tesla bull, described Tesla's robotaxi launch as the start of a "golden age of autonomous growth."
"Taking a step back we view this autonomous chapter as one of the most important for Musk and Tesla in its history as a company...as we believe the AI future at Tesla is worth $1 trillion to the valuation alone over the next few years," Ives wrote in a note on Friday, reiterating an outperform rating and a $500 price target for Tesla stock.
Tesla stock has been volatile this year, but it's up sharply since its April lows, partly on excitement for the robotaxi launch. Investors have been concerned about falling Tesla sales, as well as Musk's political activities, which some shareholders believe have harmed the brand.
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Texas lawmakers send letter to Tesla asking to delay robotaxi rollout in Austin
AUSTIN (KXAN) — A group of Texas lawmakers sent a letter to Tesla urging the company to delay its robotaxi operations in Austin. Tesla reportedly planned to launch the self-driving service on Sunday, June 22. The letter said the Texas Legislature approved a revision to the state's 2017 autonomous vehicle operations framework. It mentioned how this new law goes into effect this September. 'Under the new framework, commercial autonomous vehicle operators transporting passengers or property must receive prior authorization from the Department of Motor Vehicles before operating on public streets without a human driver,' the letter read. In order to get that authorization, an operator must demonstrate each vehicle is: Capable of operating in compliance with state traffic laws Equipped with a recording device Compliant with federal law, including federal motor vehicle safety standards Capable of achieving a minimal risk condition if the automated driving system is rendered inoperable Registered, titled, and insured under Texas law Safety concerns emerge as Tesla robotaxis prepare for launch Along with those requirements, operators have to submit a First Responder Interaction Plan to the Department of Public Safety to explain the following: How first responders interact with the autonomous vehicles How to communicate with fleet support and safely remove or tow vehicles from the roadway Any additional information regarding hazardous conditions or public safety risks associated with the vehicles 'As members of the Austin delegation in the Texas Senate and Texas House of Representatives, we are formally requesting that Tesla delay autonomous robotaxi operations until the new law takes effect on September 1, 2025. We believe this is in the best interest of both public safety and building public trust in Tesla's operations,' the letter read. Austin-based business says it will offer Tesla robotaxi rentals in 2026 The letter said if Tesla still proceeds with its plans to launch this month, they request the company responds to this letter with detailed information demonstrating that Tesla will be 'compliant with the new law upon the launch of driverless operations in Austin.' Last month, Tesla CEO Elon Musk discussed plans with CNBC to launch the service in Austin. 'We want to deliberately take it slow,' Musk said. 'I mean, we could start with 1,000 [robotaxis] 10,000 on day one, but I don't think that would be prudent. So we will start with probably 10 for a week, then increase it to 20, 30, 40.' Musk himself mentioned testing already started. Just last week, he posted on X that, 'for the past several days, Tesla has been testing self-driving Model Y cars (no one in driver's seat) on Austin public streets with no incidents.' The service is reportedly already available for some employees. In April, Tesla's AI account posted a video on X claiming that 'supervised ride hailing service is live for an early set of employees in Austin and [the] San Francisco Bay Area.' This letter adds to another one Tesla recently received by the National Highway Traffic Safety Administration (NHTSA). US agency asks Tesla questions about its Austin 'robotaxi' plan In a letter sent to Tesla in May, the NHTSA asked the company to explain how it plans to operate safely. Questions focused on things like: Crash reporting Complying with traffic safey laws Automated responses to emergencies NHTSA asked how the robotaxis will safely operate in low-visibility, like sun glare, fog, rain or snow. Those conditions are tied to previous accidents involving the company's driver-assistance software. KXAN reached out to see if NHTSA heard back. The agency told us earlier this month that its investigation remains open and that Tesla's response must be submitted by June 19. NHTSA said any updates will be posted in the investigation file online. KXAN reached out to Tesla for comment, and we're waiting for a response. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Tesla is set to launch its robotaxi service in Austin this weekend, entering a crowded autonomous vehicle field
The launch of Tesla's robotaxi service is tentatively set for this weekend in Austin, Texas, entering a crowded arena of autonomous vehicles already operating in the city. Tesla is competing with driverless Waymo taxis that are already transporting people around the city, while Amazon's Zoox and Volkswagen are testing robotaxis there too. Tesla's driverless taxi service launch has been highly anticipated by investors and fans, however, officials and lawmakers have expressed automotive safety concerns. On Wednesday, Texas lawmakers sent a letter to Tesla urging the company to delay its robotaxi service launch until September, when a new state law regulating autonomous vehicles takes effect. It adds to another letter, sent by the National Highway Traffic Safety Administration to Tesla last month, asking for additional safety information about its robotaxi rollout. That same month, Elon Musk, Tesla's chief executive, acknowledged the need for national regulations around autonomous vehicles. 'It's going to be important to have a unified set of national regulations for self-driving cars,' he told CNBC. 'Otherwise, you're going to get into this weird situation where, if you're driving from Maine to New York, you're going to go through 10 different sets of regulations. Cars are going to behave differently. It's not going to make any sense.' Here's what we know about the driverless service set to launch this weekend. For the initial launch of the fully autonomous ride-hailing robotaxi service, Tesla will use its internal fleet of Model Y electric vehicles, updated with the company's Full Self-Driving (FSD) software, without a driver. If the autonomous cars run into a safety issue, a remote driver can step in and take control of the vehicle. The Cybercab is Tesla's driverless taxi that will also rely on the FSD software without a human driving the vehicle. The initial launch of Tesla's robotaxi service won't include the Cybercab because it isn't expected to go into production until at least 2026. Musk says each Cybercab will likely cost less than $30,000 to produce. The fully autonomous vehicle won't have a steering wheel or pedals and will have a large center touchscreen. The two-passenger vehicle won't have a backseat or a rear window but will have a rear cargo area. Musk says it won't have a traditional charging port and will rely on inductive (wireless) charging, which will charge by parking over a pad embedded in a designated charging area. Musk said earlier this year that the service would launch sometime in June. Bloomberg News then reported the launch was poised to happen on June 12, citing a person familiar with the matter. Two days before the anticipated launch, Musk reposted a video on X that showed Tesla testing a self-driving Model Y car in Austin, with what appeared to be no driver. Later that day, Musk replied to a user on X that the tentative rollout of the robotaxi service was June 22. 'We are being super paranoid about safety, so the date could shift,' Musk said. He also indicated that the first driverless trip from the Tesla factory to a customer's house will take place on June 28, which is the billionaire's birthday. The letter that Texas Democratic lawmakers sent Wednesday to Tesla's director of field quality urged the company to delay the robotaxi service launch until a new Texas law takes effect, on Sept. 1. The law revises previous state guidelines for autonomous vehicles and requires the operators to receive prior authorization from the Department of Motor Vehicles. The letter states that in order to get that authorization, Tesla needs to show: that the vehicles can operate while abiding by state traffic laws, have a recording device, comply with federal standards, are properly registered and insured, and can 'achieve a minimal risk condition' if the autonomous system stops working. The Texas lawmakers asked the company to provide 'detailed information demonstrating that Tesla will be compliant with the new law upon the launch of driverless operations in Austin' if they decide to proceed with the launch over the weekend. Yahoo News has reached out to Tesla for comment. In addition to the Model Y taxis being remotely monitored at first, Musk told CNBC that the vehicles will also be 'geofenced' to certain areas of Austin that Tesla considers the safest to navigate. 'We want to deliberately take it slow,' Musk said. 'I mean, we could start with 1,000 or 10,000 [robotaxis] on day one, but I don't think that would be prudent. So we will start with probably 10 for a week, then increase it to 20, 30, 40.' For the initial launch, the robotaxi service is expected to only be available to Tesla employees or by invite. 'The service will probably not be available to the general public for several months, analysts said,' according to the New York Times. Musk says he hopes to have by the end of 2026 'over a million Teslas' doing 'unsupervised full self-driving, where you do not need to pay attention.' Musk had originally promised in 2019 that there would be 1 million self-driving robotaxis on the road by 2020.
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Amazon Wants to Launch Its Own Stablecoin. Should You Buy AMZN Stock Here?
The cryptocurrency landscape is heating up in 2025, driven in large part by President Donald Trump's public embrace of Bitcoin (BTCUSD) and crypto-friendly policies, as well as the recent blockbuster IPO of stablecoin issuer Circle Internet Group (CRCL). Amid this shifting backdrop, stablecoins — cryptocurrencies whose value is pegged to stable assets, typically the U.S. dollar — have caught the attention of global giants seeking to streamline their payment processes and significantly reduce transaction fees. Amazon (AMZN), one of the world's largest e-commerce and cloud computing companies, is reportedly exploring its own entry into this space by launching a stablecoin for online transactions. This move could have enormous implications, potentially allowing Amazon to sidestep billions in fees currently paid to credit card networks and banks, while simultaneously creating an entirely new profit stream through earned interest on customer funds held in stablecoins. Dear Tesla Stock Fans, Mark Your Calendars for June 30 3 ETFs with Dividend Yields of 12% or Higher for Your Income Portfolio This Options Tool Can Show You How to Trade Tesla Stock Ahead of Robotaxi Day Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. But how realistic is this scenario, and what could it mean for Amazon investors? In this article, we'll examine the potential impact of Amazon issuing its own stablecoin, evaluate the risks and opportunities involved, and determine whether now is the right time for investors to buy AMZN stock. Let's dive in! Amazon (AMZN) is a global leader in e-commerce and cloud computing. The company operates a diverse business model, encompassing retail sales of consumer products through its online and physical stores, cloud services through AWS, and advertising and subscription offerings. AMZN currently has a market cap of $2.26 trillion. Shares of the e-commerce and cloud services giant are down just 4.2% on a year-to-date basis. AMZN stock has had a turbulent ride this year. After climbing above $240 in February, the stock dropped more than 30% to just under $170 by early April, largely due to Trump's aggressive tariff agenda. However, as Trump paused or lowered the majority of his levies, the stock began trending upward, forming higher highs and higher lows, and most recently holding near the $210 support level. AMZN stock remains highly sensitive to tariff headlines, which is unsurprising given its massive e-commerce business, where tariffs can squeeze both revenue and profit margins. The crypto environment is heating up in 2025 amid Trump's pro-crypto stance. Trump said he's proud to be regarded as the first 'crypto president' during a pre-recorded address at Coinbase's State of Crypto Summit last week. Trump's enthusiastic embrace of crypto became evident last summer at a Bitcoin conference, where he vowed to make the U.S. the 'crypto capital of the world' — a notable reversal from his 2021 stance, when he dismissed Bitcoin as a 'scam.' The shift helped his campaign, drawing in millions of dollars in donations from the crypto industry. In March, Trump delivered on one of his campaign promises by signing an executive order to establish a U.S. strategic Bitcoin reserve. On Tuesday, the Senate passed the GENIUS Act, a landmark bill that, for the first time, sets federal guidelines for U.S. dollar-pegged stablecoins and establishes a regulated framework allowing private companies to issue digital dollars with federal approval. The bill still faces hurdles in the Republican-controlled House, but its passage in the Senate marks a pivotal moment, reinforcing a more favorable environment for crypto in the U.S. Trump earlier stated that once the Genius Act is passed, he intends to create 'clear and simple market frameworks that will allow America to dominate the future of crypto and bitcoin.' Meanwhile, Trump and his family have actively ventured into the cryptocurrency space, making moves into stablecoins, Bitcoin mining, and even launching a memecoin. For example, Trump launched his own memecoin and a U.S. dollar-pegged stablecoin through his family's World Liberty Financial project. Also, Trump's sons, Eric and Donald Jr., are behind a crypto mining venture, American Bitcoin, which intends to list on the Nasdaq and aims to become one of the world's largest and most efficient Bitcoin mining operations based in the U.S. It's also worth mentioning the recent high-profile initial public offering (IPO) of Circle Internet Group (CRCL), the company behind one of the world's largest stablecoins, USDC. The company's IPO surpassed all expectations, pricing above an increased range and attracting more than 20 times the number of available shares in orders, according to Bloomberg News. Circle's $1.1 billion IPO stands out as the most prominent crypto debut since Coinbase Global's direct listing in 2021 and reflects the increasingly favorable climate for crypto in the U.S. The momentum surrounding the GENIUS Act has reignited interest in stablecoins. Last Friday, the Wall Street Journal reported that some of the largest U.S. merchants are exploring the use or issuance of stablecoins, potentially moving a significant volume of cash and card transactions outside the traditional financial system. According to the report, Amazon, Walmart (WMT), and other multinational giants have recently considered issuing their own stablecoins in the U.S. The move could potentially cut the billions of dollars retail giants spend on credit transaction fees. For context, stablecoins are a type of cryptocurrency, running on a blockchain, that are typically pegged to a stable asset, most commonly the U.S. dollar. They are also backed by cash and cash-equivalent assets, such as U.S. Treasuries. This aims to avoid the volatility commonly seen in cryptocurrencies like Bitcoin. Stablecoins are the latest opportunity in big retail's long-running effort to eliminate billions in costs and days of delays associated with payment transactions. It's important to note that credit and debit card payments come with interchange fees — charges merchants pay to the card issuer for processing transactions. For instance, Mizuho estimated that Walmart pays just under 2% in interchange fees on card-based transactions, amounting to billions in annual costs. With that, using stablecoins for payments would undoubtedly benefit retailers like Amazon by boosting their margins and profits. Retailers are exploring two potential ways to implement stablecoins, according to the WSJ, which outlined Walmart and Amazon's plans. They could either begin accepting existing stablecoins, like Tether's USDT, Circle's USDC, or PayPal's (PYPL) PYUSD, or issue their own — either individually or collaboratively. If retailers issued their own stablecoins, it could open up an entirely new source of profit. Similar to current issuers, they would retain the interest earned on all funds deposited to purchase their stablecoins. Meanwhile, Amazon remains in the early phases of exploring stablecoin options, a source told the WSJ. Some of the discussion has centered on the possibility of Amazon issuing its own stablecoin for online transactions. It's also worth noting that any efforts by Amazon, Walmart, and other global retailers to launch their own blockchain-based payment systems could pose a threat to credit card issuers and the broader banking industry. Card companies like Visa (V) and Mastercard (MA) would simply lose out on interchange fees, directly affecting their revenues. However, since banks that issue the cards receive the bulk of the card fees, they would be affected as well. Moreover, money held in retail stablecoins or various apps is money that banks no longer have available to issue loans and generate profits. Another interesting point is that retailers may struggle to persuade consumers to adopt stablecoins unless they offer some form of incentive. According to Mizuho Securities analyst Dan Dolev, if those incentives become too costly, they could outweigh any interchange fee savings for the retailer. Also, analysts at Keefe, Bruyette & Woods noted that merchants have previously tried to launch their own payment systems, such as mobile wallets, but these efforts have struggled to gain traction. Wall Street analysts are highly optimistic about Amazon. Of the 53 analysts covering the stock, 45 rate it a 'Strong Buy,' six assign a 'Moderate Buy' rating, and just two recommend holding. This translates to a consensus rating of 'Strong Buy.' The mean price target for AMZN stock is $241.73, implying 14.7% upside from current levels. Analysts tracking the company foresee a 12.15% year-over-year increase in its GAAP EPS to $6.20 for fiscal 2025, with revenue expected to grow 8.94% year-over-year to $694.99 billion. Amazon's leadership in cloud computing and e-commerce retail positions the company well for long-term growth. The company continues to invest heavily in AI and cloud infrastructure, which is expected to support its long-term growth. With a forward earnings multiple of 34.5x, I consider AMZN's valuation to be more than justified. It might seem high if you see Amazon solely as a retailer, but it's reasonable given the strength of its cloud and AI business. The potential launch of its own stablecoin for online transactions could be a big win for Amazon. In theory, it could cut billions in costs while creating an entirely new profit stream, enabling Amazon to earn interest on all funds deposited to buy its stablecoin. However, it's also important to note that encouraging consumers to adopt stablecoins may prove challenging and would likely require offering some sort of incentive. If those incentives become too expensive, they could offset any potential benefits from switching to stablecoin payments. Given that all of this is still in its early stages, I don't believe it yet forms a solid investment thesis for AMZN. However, it doesn't change the fact that AMZN remains a high-quality stock with strong long-term growth potential. I believe this member of the Magnificent Seven belongs in every investor's portfolio, and for me, the best strategy is to take advantage of any dips in its stock price. On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
