Tesla shares jump 10% as robotaxi pilot hits the streets of Austin

Tesla shares surged 10% on Monday after the electric carmaker launched its long-awaited driverless robotaxi service over the weekend, signaling a major step forward in the company’s autonomous vehicle ambitions.

The pilot rollout took place in Austin, Texas, where a limited group of users were able to hail fully autonomous Tesla robotaxis on Sunday. According to CEO Elon Musk, who posted about the launch on social media platform X, each ride cost users a flat fee of $4.20.

The test fleet consists of roughly 10 to 20 vehicles operating within a geofenced zone in Austin. The rides are being closely monitored as part of the company’s initial evaluation phase.

With this move, Tesla enters direct competition with Alphabet-owned Waymo, which already runs commercial robotaxi services in several cities.

Tesla has deployed just 10 to 20 vehicles for this initial phase, aiming to demonstrate real-world viability in an industry where full autonomy has often stumbled due to safety concerns and regulatory hurdles. Service may be paused during bad weather.

While Tesla is still reeling from a broader slump in vehicle sales and mounting criticism of Musk’s leadership, the robotaxi launch represents a strategic pivot toward emerging technologies—including self-driving software and humanoid robotics. However, the stock, still down 20% this year, faces skepticism.

“Tesla seems well positioned, but we believe the upside is already baked into the stock,” Bloomberg quoted UBS analyst Joseph Spak as writing in a note on Monday. Despite raising his price target to $215, it remains far below Tesla’s closing price of $322.16 last week.

With inputs from agencies