Tesla Robotaxi Launch in Austin Sparks 8% Stock Surge

Tesla (NASDAQ: TSLA) shares jumped 8.2% to $348.63 on Monday after launching its highly anticipated Robotaxi service in Austin, Texas. The pilot program, using 10 to 20 Model Y vehicles, operates in geo-fenced zones and excludes airport routes. Rides cost a flat $4.20 and include a safety monitor in the front passenger seat, supported by remote driver oversight—though monitors do not interact with passengers.

This early rollout marks a key milestone in Tesla’s autonomous vehicle ambitions. RBC Capital Markets noted that while the launch structure was expected, the presence of a passenger-side safety monitor and remote supervision adds a fresh layer of operational safety. RBC continues to view autonomous mobility as a major driver of Tesla’s valuation, estimating it could account for 60% of the company’s future worth.

Tesla’s camera-only, machine learning-based system differentiates it from rivals that rely on costly lidar and radar arrays. Analysts say most current robotaxi competitors remain unprofitable due to expensive hardware and heavy mapping requirements. Tesla’s software aims to mimic human driving judgment using real-time AI, a cost-effective strategy that could disrupt the sector—if it proves reliable at scale.

Wedbush analyst Dan Ives, who experienced the ride firsthand, described it as “comfortable, safe, and personalized.” He praised the vehicle’s ability to navigate tight urban spaces, narrow uphill roads, and unpredictable street obstacles with poise.

Coinciding with the launch, Texas passed legislation requiring DMV approval for fully driverless operations starting September 1. While the current fleet doesn’t include Tesla’s upcoming “cybercab,” analysts believe this trial lays the groundwork for broader expansion.

Industry watchers see this as the beginning of Tesla’s “AI story” and a potential trillion-dollar autonomous mobility opportunity.