Tesla Shares Jump 8% After Launch of Robotaxi Service

Autonomous ride-hailing begins in Austin with safety-monitored Model Ys as analysts hail early success

Tesla Rolls Out First Robotaxi Service in Austin

Tesla (NASDAQ: TSLA) shares surged 8.2% to $348.63 on Monday after the EV giant officially launched its highly anticipated Robotaxi ride-hailing service in Austin, Texas.

The pilot service, which uses 10 to 20 Model Y vehicles, is currently restricted to geo-fenced areas within the city. Airport journeys are not yet included.

Safety Measures and Pricing

Each ride includes a Tesla safety monitor in the front passenger seat and is also overseen by remote drivers. However, the onboard monitor does not interact or control the vehicle during trips.

Tesla has set a flat fare of $4.20 per ride as part of its initial rollout pricing.

Market Reaction: Investor Caution with Optimism

Analysts at RBC Capital Markets described initial investor sentiment as neutral, noting the core launch details had already been expected. However, they highlighted the novel safety framework involving remote oversight and in-vehicle monitoring as a unique step.

RBC maintains that robotaxis could account for up to 60% of Tesla’s total valuation in the future, especially if Tesla’s camera-based, machine learning-driven approach proves scalable.

Unlike competitors relying on lidar and radar systems, Tesla’s autonomous platform is designed to function using only vision-based technology—aiming to replicate the behaviour of human drivers with fewer hardware costs.

“Tesla’s system is less expensive and more scalable,” RBC noted. “But success will hinge on real-world performance.”

Firsthand Reviews: A Glimpse of the Future

Dan Ives of Wedbush Securities, who experienced the service personally, described the ride as:

“Comfortable, safe, and personalised. This is the future.”

Ives praised the car’s performance in difficult driving environments, including narrow, crowded streets and unexpected urban obstacles:

“The vehicle navigated a tight hill with parked cars and oncoming traffic—flawlessly,” he wrote.

New Legislation for Autonomous Vehicles in Texas

On the same day as the Robotaxi launch, Texas introduced a new law mandating that autonomous vehicle operators obtain approval from the state’s Department of Motor Vehicles before operating without a human driver. These regulations come into effect from 1 September 2025.

Not the Final Design—But a Strong Start

The current rollout does not use Tesla’s upcoming purpose-built “cybercab”, but analysts believe this test phase is a stepping stone to wider adoption of Tesla’s AI-powered mobility platform.

Wedbush called the launch a significant milestone in what they described as:

“The beginning of Tesla’s $1 trillion autonomous journey.”

Summary

• Tesla shares rose 8.2% following its Robotaxi launch in Austin
• The service uses Model Y vehicles, with flat $4.20 pricing
• Safety is managed via in-vehicle monitors and remote oversight
• Analysts see robotaxis as key to Tesla’s long-term valuation
• New Texas law to regulate fully driverless vehicles from September 2025

Sources: (Investing.com, Reuters.com)