Why is Tesla up today?
Tesla stock soars 8.2% after robotaxi pilot launch in Austin
Tesla’s stock surged 8.2% on Monday after the company successfully kicked off its long-awaited robotaxi pilot in Austin, Texas.
CEO Elon Musk confirmed the launch via his X account, announcing that customers could hail robotaxis for a flat fee of $4.20 per ride. Initial reports from users showed multiple successful rides in Tesla Model Y vehicles marked with “Robotaxi” branding, indicating a smooth rollout on day one. The limited pilot includes 10 to 20 vehicles operating within a geofenced area, with onboard Tesla employees and remote teleoperators providing safety oversight. This controlled approach appears to have reassured early investors and Tesla enthusiasts, setting a positive tone for the project’s future.
Scaling and Safety Concerns Temper Long-Term Optimism
Despite the successful launch, analysts cautioned against premature excitement, focusing instead on the significant scaling and safety hurdles that lie ahead. Tesla will need to scale the service to thousands of vehicles without human safety operators to meaningfully compete with leaders like Waymo.
Industry experts, such as Barclays’ Dan Levy, noted that while the robotaxi rollout is a milestone, reaching commercial viability will likely be a lengthy process fraught with regulatory and operational challenges. Safety remains a critical concern, particularly after previous incidents involving competitors like GM’s Cruise and Uber, which suspended similar programs following accidents.
Multiple Catalysts Drive Tesla’s Stock Rally
Several factors contributed to Tesla’s stock surge beyond the robotaxi news. Analyst Dmytro Kharkov highlighted growing optimism from Wall Street, including positive commentary from Wedbush’s Dan Ives, who believes the robotaxi rollout could significantly enhance Tesla’s valuation by 2026. Additionally, signals from the Federal Reserve about potential interest rate cuts boosted growth stocks across the board, further fueling Tesla’s rally.
Kharkov stated:
"Tesla has returned to an upward trend. The stock could gain another 10% by the end of June."
Geopolitical tensions in the Middle East have also eased, stabilizing oil prices and improving market sentiment. From a technical perspective, Tesla’s stock broke out of a bullish chart pattern on high trading volume, attracting momentum traders who see further upside potential in the near term.
Recently we wrote that as of June 24, Tesla stock is trading at $348.68, up 8.2% in the past 24 hours.
