Tesla’s shares jumped 10% on Monday following the introduction of its self-driving “Robotaxi” fleet.
By then, Tesla’s stock was around $354 per share. This boost followed a trial run in Austin, Texas, attended by a select group of influencers on Sunday.
Dan Ives, an analyst enthusiastic about Tesla, described the trial experience as surprising and beyond expectations.
Ives, who gave a favorable rating and set a $500 price target for Tesla’s stock, mentioned, “We were impressed right from the start, although we expected something less.”
He enjoyed two rides, each lasting about 15 minutes in Austin.
“The ride was incredibly smooth. There was never a moment I felt like the vehicle was out of control; I honestly couldn’t tell it was without a driver,” he added.
According to Ives, the vehicle’s safety monitors were present but stayed silent, having no effect on the car’s operation.
Currently, the electric vehicle company is providing driverless rides on an invite-only basis, charging $4.20—a nod to marijuana culture. Around ten unmanned Tesla Model Y SUVs are operational, with safety monitors in the front seat to supervise the rides.
One notable influencer, known as the bearded Tesla Guy, likened the experience to riding in an Uber.
Fazad Mesbahi, a former Tesla employee turned influencer, described his ride as “very smooth and comfortable.” He added, “Tesla really needs to focus on safely broadening this service. If the tech holds up, they could easily expand the Robotaxi service across the U.S.”
Robotaxi is set to face competition from Waymo, owned by Google, and Zoox, which is backed by Amazon, in the autonomous vehicle sector.
Musk celebrated the launch with a tweet, acknowledging the hard work of his software and chip design teams in bringing the Robotaxi to life.
An invitation from Tesla illustrated that the initial Robotaxi service runs from 6 AM to midnight, focusing on the Geofykens area.
The company also indicated that the service may be restricted during bad weather.
While Musk has consistently promoted the potential of Tesla’s “full self-driving” features, safety concerns have been raised by federal regulators and other critics.
He believes self-driving tech could add somewhere between $5 and $10 trillion to Tesla’s market value by transforming cars into a more productive fleet.
Musk, cautious about safety, mentioned that the development of Robotaxis has been intentionally slow.
This launch comes at a challenging time for Tesla, which has faced scrutiny since Musk associated himself with a controversial initiative involving former President Trump.
Though Musk and Trump had a public disagreement earlier this month, it seems they have since reconciled.
