Tesla shares climbed over 9% on Monday following the company’s long-promised debut of its driverless robotaxi service in Austin, Texas, over the weekend.
The steep jump in Tesla stock was in stark contrast to the broader market, which was trading mostly flat amid geopolitical tensions.
The electric vehicle maker launched the autonomous ride-hailing service on Sunday for a small group of invited users, charging a flat fee of $4.20 per ride.
The launch marks a critical step toward Tesla CEO Elon Musk’s long-standing goal of deploying a commercial self-driving fleet.
In a post on X (formerly Twitter), Musk praised Tesla’s AI software and chip design teams, describing the launch as the “culmination of a decade of hard work.”
“Super congratulations to the @Tesla_AI software & chip design teams on a successful @Robotaxi launch!!” Musk wrote. “Both the AI chip and software teams were built from scratch within Tesla.”
Musk’s robotaxi: positive first reactions
According to multiple posts on X, early testers reported smooth performance.
One user noted completing 11 “smooth as butter” rides with “zero issues.”
Musk shared and amplified several such accounts on the platform, suggesting the early phase was operationally stable.
The rollout was limited to a roughly 10-square-mile geofenced area within Austin, with about 20 selected influencers granted access to the pilot program.
Guggenheim analyst Ronald Jewsikow described the debut as “relatively uneventful,” a positive in the context of autonomous driving.
In a Monday report, he wrote, “Based on our analysis of publicly available videos from the influencer community, the day was filled with almost entirely clean driving performance.”
Wall Street analysts remain cautious on Tesla stock
Jewsikow maintained a Sell rating on Tesla stock with a $175 price target, citing valuation concerns.
Other analysts also acknowledged the milestone but reiterated concerns over Tesla’s valuation.
UBS analyst Joseph Spak raised his price target on the stock to $215 from $190 but kept a Sell rating, stating that the robotaxi opportunity was already priced into shares.
Barclays, which maintained an Equalweight rating and a $275 price target, said the robotaxi debut was “uneventful with no major issues” and underscored that the event would be interpreted differently by bulls and bears.
“For bulls, this is the start of a new era for Tesla. For skeptics, the limited scope and ongoing questions around full autonomy temper the enthusiasm,” the firm said in a client note.
Tesla stock closed Friday at $322.16, trading at nearly 170 times estimated 2025 earnings, according to FactSet data.
Tesla’s Robotaxi vs Alphabet’s Waymo
Tesla’s launch puts it in more direct competition with Alphabet’s Waymo, which has already achieved significant scale in autonomous ride-hailing.
Waymo has logged over 10 million autonomous trips and operates robotaxi fleets in several US cities, including Phoenix and San Francisco.
Still, unlike Waymo, which uses purpose-built vehicles with no human controls, Tesla’s approach relies on its existing fleet of electric vehicles outfitted with software upgrades.
The distinction underscores different philosophies in the race to commercialize autonomy: full-stack integration versus incremental software deployment.
As Tesla’s service moves beyond its controlled pilot in Austin, investors and regulators alike will be watching for signs of scalability, safety, and public acceptance—each a key factor in determining whether the company’s long-touted robotaxi ambitions become a commercial reality.
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