Tesla has made headlines on Wall Street with a remarkable boost in its stock price. Following the highly anticipated launch of its robotaxi service, shares surged over 10% during Monday’s trading session, adding an incredible $104 billion to its market capitalization and bringing the company’s total value to $1.14 trillion.
This impressive rise came in response to the service’s initial debut in Austin, Texas, where a limited fleet of around a dozen Model Y SUVs began operating in a designated area. Investors were particularly excited about the technology driving these vehicles. Unlike competitors like Waymo, which use costly LiDAR and radar systems, Tesla’s entire autonomous strategy hinges on its camera-based Full Self-Driving (FSD) system.
For this launch, Tesla invited select influencers and enthusiasts for the inaugural rides. Their feedback? Exhilarating. “Screw it, I’m going to extend my stay in Austin another day,” said Sawyer Merritt, a Tesla investor and one of the first passengers. When asked to compare the experience to Uber, he simply stated, “Robotaxi.”
Robotaxi.
— Sawyer Merritt (@SawyerMerritt) June 23, 2025
Notably, Wedbush analyst Dan Ives, a staunch supporter of Tesla, also participated. His impressions were overwhelmingly positive. “Although there was a Tesla Operator in the front passenger seat of the Robotaxi, they were not involved in any decision-making,” Ives reported. “At one point, we navigated a narrow, uphill road with parked cars on both sides and oncoming traffic, yet the Robotaxi expertly maneuvered through this chaos with patience and safety.”
Considering this, Ives believes we are at the dawn of a “$1 trillion autonomous journey,” asserting that Tesla “exceeded” his expectations and “has ignited the flame for autonomous driving.”
Dan Ives of Wedbush has released a new note after riding in Tesla Robotaxis today in Austin:
“This afternoon we attended Tesla’s Robotaxi launch in Austin, TX and got the opportunity to take multiple rides in a Robotaxi. There was a Tesla Operator sitting in the front… pic.twitter.com/3cZ2UZKGAO
— TESLARATI (@Teslarati) June 23, 2025
This launch represents the culmination of a promise Elon Musk has made for years. His vision includes a fleet of robotaxis that could potentially increase Tesla’s market value by an astounding $5 trillion to $10 trillion. This optimistic outlook is supported by figures like Cathie Wood from ARK Invest, who predicts that robotaxis could comprise 90% of Tesla’s profits by 2029.
However, there’s a significant challenge—competition. Waymo, owned by Google, currently leads the market with a broader service operating in Austin as well as Phoenix, San Francisco, and Los Angeles. Additionally, Zoox, backed by Amazon, offers its services in Las Vegas and San Francisco. Critics argue that this competitive landscape casts doubt on Musk’s ambitious forecasts.
To add to the complexity, Texas Governor Greg Abbott recently signed legislation mandating companies acquire state permits to operate self-driving vehicles. Although this law takes effect on September 1, it highlights the regulatory hurdles Tesla faces as it seeks to expand into new cities.
The launch event in Austin was executed brilliantly, capturing the attention of investors and driving the stock price upward. The key question remains—can Tesla’s technology truly meet the lofty expectations and overcome established competition in the quest for autonomous dominance?
What does Tesla’s robotaxi service mean for the future of transportation? It could reshape the industry. As these self-driving vehicles become more widely accepted, the implications for mobility and the environment could be profound.
What are the potential challenges for Tesla’s robotaxi service? Regulatory issues, competition, and technology reliability are significant hurdles to overcome for Tesla in the autonomous driving sector.
How does Tesla’s Full Self-Driving system compare to competitors like Waymo? Unlike competitors who use costly sensors like LiDAR and radar, Tesla relies heavily on its camera-based system, which could offer a more scalable solution.
Will robotaxis really boost Tesla’s profits? Predictions suggest that robotaxis could contribute significantly to Tesla’s profitability, with estimates like Cathie Wood’s indicating they might account for as much as 90% of profits by 2029.
As we navigate this exciting landscape of self-driving technology, it’s essential to stay informed. Follow us for more insightful content and analysis. If you’re interested in delving deeper into this topic, visit Moyens I/O.