Tesla stock jumps after Elon Musk shares robotaxi testing update

Tesla shares jumped on Monday after CEO Elon Musk said the company is testing robotaxis without a safety monitor sitting in the front passenger seat. This testing update excited investors because robotaxis are a big part of Tesla’s future plans. Tesla is now testing these robotaxis with no occupants inside the car at all, according to Musk.Elon Musk shared this update in a post on social media platform X on Sunday.

Tesla’s total market value is about $1.53 trillion, making it the most valuable automaker in the world, as reported by Reuters. A large part of this high valuation comes from investor hopes around self-driving cars and humanoid robots. However, most of Tesla’s revenue and profit still comes from selling electric vehicles, not robotaxis yet. After the news, Tesla shares rose as much as 4.9% during the day. The stock price touched $481.37, which is its highest level in nearly one year.

Tesla stock price surge

Tesla’s all-time record stock price was $488.54, reached on December 18 last year. That earlier record came when investors expected the Trump administration to make self-driving car rules easier. In June, Tesla launched a limited robotaxi service in Austin, Texas. The service used modified Model Y vehicles equipped with Tesla’s Full Self-Driving software.


In the early stage, the robotaxi service was geo-fenced, meaning cars could only drive in fixed areas. During those early rides, a human safety monitor sat in the passenger seat. Investors and analysts now expect Tesla to increase testing quickly. Many believe Tesla will move fast to deploy fully driverless taxis, as per the report by Reuters. This push comes as Tesla prepares to launch its Cybercab model next year.

Robotaxi testing update

Seth Goldstein from Morningstar said the testing news matches what Tesla management promised earlier. He said the progress fits with statements made during Tesla’s third-quarter earnings call. Goldstein added that the market is happy with the progress and is pushing Tesla shares higher. Tesla has been talking about robotaxis and self-driving taxis for many years.But strict rules and technical problems have slowed down these plans again and again.

Google-owned Waymo is currently the leader in robotaxis in the U.S. Waymo operates more than 2,500 commercial robotaxis across major U.S. cities, as stated by Reuters. As of November, Waymo had already built a large working robotaxi network. CNBC reported last week that Waymo is giving about 450,000 paid rides every week.

FAQs

Q1. Why did Tesla shares rise after Elon Musk’s robotaxi update?

Tesla shares went up because Elon Musk said the company is testing robotaxis without safety monitors, showing progress in self-driving technology.

Q2. Is Tesla already running fully driverless robotaxis?

No, Tesla is still testing robotaxis, but it plans to expand testing and launch fully driverless taxis in the future.