It was a bumpy journey for Tesla, but investors were finally optimistic as the company led by Elon Musk began launching its Robotaxi service. Tesla shares rose 9% today (June 23), after appearing to be the smooth launch of the first self-driving Teslas in Austin, Texas yesterday. The invitation-only event allows a handful of analysts and Pro-Tesla social media influencers to test the latest technology of automakers in Austin’s geo-converged area. Tesla's stock has fallen more than 18% in the past six months, and he positioned self-driving cars at the center of the company's future.
“Getting into it, we expect to be impressed. Stay away from it and just say that this is the future.”
“Super congratulations to @tesla_ai software and chip design team for successfully launching @robotaxi!” Musk said in a post on X yesterday. Ashok Elliswamy, vice president of Tesla’s AI Software, shared an image of the staff that was launched at the Robotaxi launch party.
However, the release is not completely unsupervised. Each ride includes a safety monitor in the passenger seat. Tesla also sets some basic rules: riders must be at least 18 years old, and the service is currently operating from 6 a.m. to midnight every day. And, to nod, Musk's trademark humor, a fixed fee of $4.20 per ride. Currently, Robotaxi's rides are limited to Tesla's Model Y vehicles, although the company's newly unveiled Cybercab was launched last October and the company is scheduled to start next year.
Ives said Tesla's self-driving ride feels “comfortable, safe and personalized”. Still, the release is not without its problems – some bots struggle in navigation or cannot pull away safely, as shown in the video shared by attendees.
Currently, launches may remain limited. UBS analyst Joseph Spak told customers that the service may initially involve only 10 to 20 vehicles. He pointed out that this is a common practice for self-driving rides.
Elon Musk claims that by 2026, thousands of self-driving Teslas will be on the road, but Wall Street remains skeptical of the company's ability to expand rapidly. Barclays analyst Dan Levy warned in a client’s note that the road ahead could be long and warned of “overfull interests.”
Another note by Guggenheim partner analyst Ronald Jewsikow describes the recent launch as a “baby step.” To prove Tesla's lofty valuation, the company's Robotaxi launch “needs to be closer to the sprint.”
