Tesla’s Robo-Taxi Rollout: What’s Next for the Self-Driving Future—and the Stock?
Tesla stock responded positively on Thursday, rising 4.7% to $309.87 after Musk’s latest update. That rebound comes despite an 8% drop since the launch, driven in part by broader volatility and a recent public spat between Musk and President Trump. Still, analysts remain bullish. Morgan Stanley’s Adam Jonas attributes $250 of his $410 price target for Tesla to its self-driving tech, while RBC’s Tom Narayan values it at 60% of the company’s worth. Both maintain a “Buy” rating.
What makes this project so pivotal is Tesla’s unique vision: a decentralized robo-fleet, where existing Tesla owners can offer their vehicles as autonomous ride-shares, much like Airbnb leverages private homes. It’s an ambitious strategy that could allow Tesla to scale the service rapidly without building a dedicated fleet.
For now, key hurdles remain. California regulators have only permitted Tesla to test its self-driving vehicles with a safety driver on board. The company will require additional clearance to operate full robo-taxi services, particularly in a high-profile market like San Francisco.
Despite these regulatory headwinds, the trajectory for Tesla’s robo-taxi program appears strong. If the rollout goes smoothly in Austin and approval comes through in California, Tesla could be on track to transform not just its own business model, but the entire ride-hailing and automotive landscape.
Key Takeaways:
- Tesla’s robo-taxi service is live in Austin with a small test group.
- Expansion to San Francisco is targeted “in a month or two,” pending permits.
- Analysts attribute a major portion of Tesla’s stock value to autonomous technology.
- The long-term plan: a shared, owner-powered ride-hailing fleet.
- Regulatory approval remains the biggest near-term obstacle.