Tesla's Stock Surges Amid Robotaxi Advancements
Tesla (TSLA) experienced a stock increase of over 3.5% on Monday, fueled by positive developments in its Robotaxi initiative. A prominent Wall Street analyst has declared that the "autonomous chapter" has commenced for the electric vehicle manufacturer.
The catalyst for this surge was the emergence of a video on X.com depicting a Tesla Robotaxi operating without a safety driver in Austin, Texas, where Tesla's Robotaxi service is currently being tested. Ashok Elluswamy, who is the head of Tesla's AI initiatives, confirmed the video, echoing the sentiment that the program has officially begun. Elon Musk further validated the video, stating that "Testing is underway with no occupants in the car."
Excitement surrounds Tesla's Robotaxi progress, with the company nearing its all-time high stock value achieved nearly a year ago. The demonstration of a driverless Robotaxi in Austin supports Musk's earlier statements that unsupervised robotaxis were imminent. Furthermore, Musk had previously indicated a doubling of the Tesla Robotaxi fleet in December, with expansion plans extending beyond Austin and the San Francisco Bay Area to include Phoenix and Nevada. The anticipated next phase involves the complete removal of safety drivers from the Austin service.
Analyst Perspectives
Dan Ives from Wedbush, a Tesla bull, believes that Tesla's Robotaxi strategy is unfolding as planned, predicting 2026 to be a pivotal year. According to Ives, the autonomous and robotics division is expected to significantly impact Tesla's performance in 2026. He anticipates an accelerated Robotaxi launch across the United States, along with the commencement of volume production for Cybercabs around April or May.
Tesla's custom-built Cybercab initially generated excitement for the Robotaxi initiative in October when Musk unveiled a futuristic two-seater devoid of a steering wheel and pedals at an event in Hollywood.
If Cybercab production remains on schedule, Ives suggests that 2026 will mark a turning point for Tesla, with major advancements in AI, autonomous driving, and robotics shaping the company's future.
Positive Reviews of Full Self-Driving (FSD)
Recent evaluations of Tesla's latest Full Self-Driving (FSD) version indicate significant improvements, characterized by smoother operation and reduced need for driver intervention.
- Jason Cammisa's Experience: Car reviewer Jason Cammisa described FSD as "door-to-door amazing," expressing disbelief after an hour-long trip in San Francisco.
- Al Root's Assessment: Barron's writer Al Root reviewed FSD, noting it as a "step up" and highlighting passengers' preference for FSD driving compared to his own.
While acknowledging that Alphabet's Waymo service currently offers superior safety metrics, Root stated that he prefers to let FSD handle most of the driving, citing increased ease and an added layer of safety when under supervision.
Wedbush's Optimistic Outlook
Based on the positive feedback and the advancement of Tesla's Robotaxi service, Wedbush's Ives has reiterated his "Outperform" rating and a $600 price target for Tesla, envisioning a $2 trillion valuation in the future. He believes the company's progress in FSD, autonomous driving, and Cybercab production positions it for substantial growth and a potential AI-driven valuation.
In essence, Ives views Tesla's advancements in AI, particularly in autonomous driving and the Cybercab initiative, as the company's key to unlocking significant value and shaping its future success.
FAQs
Why did Tesla stock go up recently?
Tesla's stock increased due to positive developments with their Robotaxi program, including the emergence of videos showing driverless testing in Austin, Texas. Analysts believe the autonomous chapter has begun for Tesla.
When is Tesla planning to launch its Robotaxi service more widely?
A wider Robotaxi launch across the United States is predicted for 2026, according to Wedbush analyst Dan Ives. Production of the custom-built Cybercab is expected around April or May that year.
What are people saying about the latest version of Tesla's Full Self-Driving (FSD) software?
Reviews of the latest FSD version are largely positive, with reviewers noting smoother operation and reduced driver intervention. Some reviewers have even preferred FSD driving compared to human driving.
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