Tesla stock soared 10% Monday, June 23, following the successful launch of its long-anticipated Tesla robotaxi service in Austin, Texas, marking a significant milestone in CEO Elon Musk‘s vision for autonomous transportation.
The electric vehicle maker deployed a fleet of approximately 10 to 20 Model Y vehicles on Sunday, June 22, offering rides at a flat rate of $4.20 (that’s a weed joke BTW) within designated areas of the city. The service operates from 6 a.m. to midnight daily, with safety monitors present in the front passenger seat.
“It was a comfortable, safe, and personalized experience,” said Wedbush Securities analyst Dan Ives, who took multiple robotaxi rides on Sunday. “The robotaxi masterfully maneuvered with patience and safety.”
The launch represents the first time Tesla vehicles have carried paying passengers without human drivers, though monitors remain present for safety oversight. Each vehicle includes identity verification procedures, trip customization options via a mobile app, and emergency assistance buttons.
Social media has been flooded with videos from early riders showing the vehicles navigating complex urban environments, including busy intersections and narrow streets with parked cars on both sides.
Musk called the launch “the culmination of a decade of hard work” in a post on X, formerly Twitter, praising Tesla’s software and chip design teams that were “built from scratch within Tesla.”
The market response has been overwhelmingly positive to the Tesla robotaxi, with Monday’s stock surge potentially adding nearly $100 billion to Tesla’s market value of approximately $1 trillion.
Industry analysts note the trial’s success is crucial for Tesla as Musk pivots the company toward self-driving technology amid slowing demand for electric vehicles and increasing competition, particularly from Chinese manufacturers.
Tesla plans to expand the Austin fleet to 1,000 vehicles and introduce the service to additional cities, including Los Angeles and San Francisco. The company also aims to begin production of a dedicated robotaxi model, called the Cybercab, in 2026.
The service launch comes just ahead of new Texas legislation requiring autonomous vehicle services to obtain state permits before operating, which takes effect Sept. 1.
Tesla joins other autonomous vehicle companies already operating in Austin, including Alphabet’s Waymo and Amazon’s Zoox.
Some industry experts have questioned Tesla’s camera-based autonomous system, which differs from competitors using additional sensors like lidar and radar. Critics suggest Tesla’s approach may face challenges in adverse weather conditions such as fog, heavy rain or glaring sunlight.
Despite these concerns, early customer feedback has been largely positive, though some observers note the initial user selection—primarily influencers and Tesla investors—may have produced biased reviews.
The Tesla robotaxi service represents a critical step in Musk’s vision for Tesla, which has increasingly focused on autonomous driving technology as a key driver of the company’s valuation, which remains significantly higher than traditional automakers.
Tesla continues trading at approximately 149 times forward earnings estimates, compared to Ford Motor at 9.3 and technology giant Microsoft at 31.6.
Frank Wilson is a retired teacher with over 30 years of combined experience in the education, small business technology, and real estate business. He now blogs as a hobby and spends most days tinkering with old computers. Wilson is passionate about tech, enjoys fishing, and loves drinking beer.
Why Americans Are Avoiding Travel: The Real Reasons
