TLDR
- Tesla stock jumped 5.7% Tuesday as the company was officially listed as an autonomous vehicle operator in Austin, Texas
- The robotaxi service is set to launch around June 22, with 10-20 vehicles initially testing in Austin
- Tensions between Elon Musk and President Trump appear to be cooling after recent public disputes
- Tesla will use remote human operators to intervene when robotaxis encounter problems or get stuck
- Despite the rally, Tesla shares remain down 14% year-to-date due to competition and launch delays
Tesla stock surged 5.7% Tuesday as investors got excited about the company’s upcoming robotaxi launch. The electric vehicle maker was officially listed as an autonomous vehicle operator in Austin, Texas.
This listing comes just days before Tesla’s planned robotaxi service launch around June 22. The company joins other operators like Waymo and Zoox on Austin’s approved list.
Tesla will start small with just 10 to 20 robotaxis during initial testing. If things go well, the company plans to add more vehicles to the fleet.
Videos circulating on social media showed a Tesla Model Y with “Robotaxi” painted on its side cruising through Austin streets. A second Tesla followed closely behind as a chase vehicle.
The company will use remote human operators as backup. These tele-operators can take control if a robotaxi gets stuck or faces an emergency situation.
Musk called the June 22 date “tentative” in posts on X. He said Tesla is being “super paranoid about safety” and the launch could be delayed if needed.
Political Tensions Cool Down
Another reason for Tesla’s stock jump was easing tension between Musk and President Trump. The two had a public spat last week that sent Tesla shares tumbling 14% in a single day.
Trump made conciliatory comments about Musk on Monday during a White House event. When asked if he would speak with Musk, Trump said he’d have no problem with it.
“I’d imagine he wants to speak with me,” Trump told reporters. The president also said he wasn’t planning to sell his Tesla Model S that he bought in March.
Musk responded to Trump’s olive branch with a heart emoji on X. He also said Wednesday that he regretted some of his posts from last week’s feud.
Stock Still Faces Headwinds
Tuesday’s rally marked Tesla’s third straight positive trading session. The gains helped the stock recover most of its losses from the previous week’s dramatic selloff.
However, Tesla shares are still down 14% for the year. The stock has faced pressure from increased competition in the electric vehicle market and delays in major product launches.
Investors have grown frustrated with Tesla’s pace of innovation. Many are hoping the robotaxi service will open new revenue streams for the company.
The robotaxi launch could change how people view Tesla’s artificial intelligence capabilities. Success in autonomous driving would validate years of investment in the technology.
But plenty of challenges remain ahead of the June launch date. Safety concerns top the list, along with regulatory hurdles and public skepticism about self-driving cars.
The requirement for human backup operators could slow Tesla’s plans to scale up the robotaxi fleet quickly. Other companies in the space have faced similar operational challenges.
Tesla stock closed at $326.09 on Tuesday and continued climbing in after-hours trading. Shares hit $333.20 in pre-market trading Wednesday, up another 2.18%.
Tesla was officially listed as an autonomous vehicle operator on Austin’s Transportation and Public Works website Monday night, confirming the company is ready to begin commercial robotaxi operations.
