Tesla (TSLA) shares soared nearly 10% Monday after the company’s highly anticipated robotaxi test kicked off in Austin, Texas, over the weekend, offering a glimpse into what CEO Elon Musk has described as a key part of Tesla’s future.
“The @Tesla_AI robotaxi launch begins in Austin [Sunday] afternoon with customers paying a $4.20 flat fee!” Musk posted on X, confirming the launch of the pilot program.
Following Musk’s announcement, multiple users on X shared experiences of riding Tesla Model Y vehicles outfitted with “Robotaxi” graphics, with one user claiming to have completed 11 separate rides.
Tesla stock jumped more than 9% in early trading following the rollout.
The pilot includes 10 to 20 Model Y SUVs operating within a geofenced zone in Austin. Each vehicle has a Tesla employee in the passenger seat who can manually shut it down if needed, along with a remote safety teleoperator who can intervene in emergencies. For now, only select Tesla users were invited to test the service.
Scaling the program to compete with autonomous driving leaders like Waymo (GOOG, GOOGL) would require thousands of driverless vehicles operating without in-car safety personnel, plus the necessary infrastructure for cleaning and maintaining the fleet.
While the launch marks a major milestone, some analysts caution against getting ahead of the facts.
“We believe the much better question ahead is on the path of scaling, which we believe will be long, and we caution against overoptimism,” Barclays analyst Dan Levy wrote in a Monday note to clients. Levy maintains an Equal Weight rating on Tesla and a $275 price target.
Safety also remains a top concern. Past issues in the industry—such as Uber’s fatal test incident and GM’s Cruise temporarily halting operations following accidents—highlight the stakes as autonomous vehicles enter real-world settings.
Despite those concerns, some on Wall Street were upbeat.
“We took two approximately 15 minute rides around Austin and the key takeaways are that it was a comfortable, safe, and personalized experience,” Wedbush analyst Dan Ives wrote in a note Sunday. Ives, a long-time Tesla bull, rates the stock Outperform with a $500 price target.
Ives described one tense situation in which the robotaxi navigated a narrow uphill street with oncoming traffic, parked cars, and pedestrians. He said the vehicle “masterfully maneuvered with patience and safety among this chaos.”
He also noted that riders could sync their Tesla accounts with the robotaxi system, allowing apps like Netflix, Spotify, Hulu, and Disney+ to automatically load personalized content. “The Robotaxis we experienced today were foundational, and there is a path for the future where these Robotaxis may also have Grok integration, interior customization, and a much more user-centric focus as there’s no longer a need to focus on the driver experience,” Ives added.
Tesla has yet to disclose when the public will be able to widely access the robotaxi service in Austin. Musk has said he envisions “millions” of robotaxis on the road by the second half of 2026, though his timelines have historically been optimistic and often delayed.
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