Tesla Holding onto Gains As Musk Says Robotaxi Numbers Will Double
Tesla stock is up today and still holding onto recent gains as they intend to expand their robotaxi service.
Quick overview
- Tesla's stock is up 0.84% to $422 as the company plans to expand its robotaxi service significantly by December.
- CEO Elon Musk announced plans to double the number of robotaxis in Austin, the first test market for the service launched in June.
- Despite some operational issues, the robotaxi service is generally running well, with safety monitors in place and ongoing adjustments to improve performance.
- Tesla is also developing a ride-hailing service for Arizona and AI robots for various tasks, with potential market rollout next year.
As tech stocks are surging for Wednesday, Tesla (TSLA) is up 0.84% to $422. The stock is holding onto gains from its recent bullish movement as CEO Elon Musk announced his plans for expansion.
Musk says that the company will grow its robotaxi service dramatically before the end of the year, announcing double the robotaxis in service for Austin in December. The company only launched this service in June, and Austin was the first test market for the automated taxis.
The service launched with safety drivers in each of the vehicles, not to do the driving but to step in and take over if the AI computers ran into difficulties. The launch was a success, albeit with some difficulties, and Tesla expanded the service to the San Francisco Bay area.
Tesla Expands Its Robotaxis
So far, the robotaxi service has had some mishaps. The taxis have been reported breaking the speed limit, veering across lanes, dropping passengers to the wrong destination, and experiencing other issues. These have been mostly scattered problems, though, and for the most part, the service is running as intended.
The taxis still have safety monitors to handle any issues that may arise, and Tesla has been making adjustments to the onboard computers so that the service runs more smoothly as they expand the number of vehicles and service areas. Musk said that Tesla intends to expand to around eight more metropolitan areas before 2025 is over.
Tesla is also working on a ride hailing service to Arizona. They have applied for permits to open the business there, but there is no word yet on how soon that will happen. The company is developing AI robots as well that will perform a variety of tasks at home and in the workplace. These Optimus machines are in production now and could roll out to the market as early as next year.
Tesla stock is up slightly for the year so far, from $410 in January to $422 now- an increase of 2.9%. The stock price dropped sharply throughout April and has made a full recovery, but that decline set the company back significantly. The drop off was attributed to Musk stepping away from the company to work with the Trump administration, and it has also been attributed to poor electric vehicle sales in Europe and the United States.
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