Tesla’s Stock Soars Amid Robotaxi Testing Announcement

Tesla’s stock reached its peak in nearly a year on Monday, following remarks from CEO Elon Musk about testing robotaxis that operate without safety monitors in the passenger seat.

A significant part of Tesla’s impressive $1.53 trillion market valuation—marking it as the most valuable automaker globally—stems from investor enthusiasm surrounding the company’s self-driving technology and ambitions for humanoid robots. Yet, it’s worth noting that most of Tesla’s revenue still primarily comes from electric vehicle sales.

The stock price climbed as much as 4.9%, hitting $481.37, the highest it has been in almost a year.

The stock previously peaked at $488.54 on December 18 of last year, buoyed by expectations that the Trump administration would ease regulations concerning self-driving vehicles.

In June, Tesla initiated a limited robotaxi service in Austin, Texas, using upgraded Model Y vehicles equipped for full autonomy. Initially, this service also included geofencing and a human “safety monitor” in the passenger seat.

Musk announced via an X post on Sunday, “Testing is underway with no occupants inside the vehicle.”

Both investors and analysts seem optimistic that Tesla will accelerate testing and quickly roll out driverless taxis, especially ahead of the anticipated CyberCab model launch set for next year.

Seth Goldstein, a senior equity analyst at Morningstar, commented, “The news that Tesla is testing robotaxis without safety monitors aligns with our expectations that Tesla is advancing in its trials, reflecting management’s comments during the third-quarter earnings call.” He added, “The market is responding positively, and stocks are up today.”

While Tesla has frequently communicated its plans for robotaxis, progress has often been impeded by regulatory challenges and technological issues.

In contrast, Alphabet’s Waymo has successfully deployed over 2,500 commercial robotaxis in major U.S. cities as of November, reportedly conducting about 450,000 paid rides weekly according to CNBC.