Tesla has officially launched the first test rides of its long-anticipated robotaxi service in Austin, Texas—and investors are responding with excitement. The company’s stock surged by more than 9% on Monday after its fully driverless vehicles began transporting paying passengers, a significant step toward Elon Musk’s vision of an autonomous future.
The trial began Sunday, offering rides for a flat fare of $4.20, and marked the first time Tesla cars have operated on public roads without human drivers behind the wheel. The pilot is currently restricted to a limited area of Austin and involves around 10 vehicles, each monitored by a front-seat rider acting as a safety observer.
A Big Bet on Autonomy
For Musk, the robotaxi project is not just an innovation—it’s a core part of Tesla’s long-term valuation strategy. As demand slows for its existing EV models and competition from Chinese automakers increases, Tesla is shifting focus from mass-market electric vehicles to cutting-edge AI-driven mobility and robotics.
“It was a comfortable, safe, and personalized experience,” said Dan Ives, a Wall Street analyst with Wedbush Securities who took multiple rides on Sunday. He praised the robotaxi’s ability to navigate tricky scenarios, including narrow roads and unexpected traffic obstacles.
Social media quickly lit up with videos from influencers showing Tesla robotaxis skillfully maneuvering through Austin’s bustling streets—avoiding obstacles, yielding to oncoming cars, and responding smoothly to dynamic traffic conditions.
Scrutiny and Safety Questions
Despite the early success, the service is already under intense scrutiny. Tesla told U.S. regulators that its safety protocols are confidential business information and asked that related details not be made public. The National Highway Traffic Safety Administration (NHTSA) is currently reviewing Tesla’s responses, especially concerning performance in poor weather.
Some industry experts remain cautious, citing Tesla’s reliance solely on cameras and artificial intelligence, without additional sensors like radar or lidar. Critics argue that this may limit vehicle performance in low visibility conditions like fog or heavy rain.
Tesla’s robotaxi ambitions also face regulatory hurdles. A new Texas law taking effect on September 1 will require state permits for all autonomous vehicles, adding another layer of oversight just as Tesla begins scaling.
Market Impact
If Tesla’s rally holds, the company stands to gain nearly $100 billion in market value, boosting its current worth to about $1 trillion. However, the stock is still down roughly 12% for the year, weighed down by slowing EV demand and controversies tied to Musk’s political affiliations and public statements.
Still, Tesla’s valuation remains steep: the company is trading at 149 times forward earnings, far above traditional automakers like Ford and even tech titans like Microsoft.
The robotaxi rollout may be small for now—but it could be the foundation for a massive transformation in urban mobility and Tesla’s global identity.
