Tesla Stock Surges 10% After Successful Robotaxi Launch in Austin, Elon Musk Confirms $4.20 Rides
Tesla stock (NASDAQ: TSLA) soared 10% on Monday after the electric vehicle leader officially launched its long-awaited robotaxi service in Austin, Texas. The autonomous ride-hailing service, powered by the Model Y platform, opened to a select group of early testers on Sunday, June 22.
Tesla Robotaxi Launch: What Happened?
CEO Elon Musk announced the rollout on his social platform X (formerly Twitter), describing the launch as a major milestone. Passengers were charged a flat rate of $4.20 per ride, a symbolic number frequently used by Musk.
“Super congratulations to the @Tesla_AI software & chip design teams on a successful @Robotaxi launch!! Culmination of a decade of hard work,” Musk posted.
The invitation-only program initially targeted loyal Tesla fans, shareholders, and social media influencers who frequently promote the brand online.
Austin Becomes Ground Zero for Tesla’s Robotaxi Rollout
Austin is Tesla’s first market for robotaxi deployment, placing it in direct competition with Alphabet’s Waymo, which already operates self-driving vehicles in several U.S. cities.
Waymo, a leader in commercial autonomous ride-hailing, recently surpassed 250,000 rides per week and more than 10 million trips overall. Chinese rivals like Apollo Go (Baidu) and Pony.ai have reported even higher volumes in Asia.
Tesla aims to scale up quickly. In an interview last month, Musk told CNBC that the company plans to deploy hundreds of thousands — if not over a million — robotaxis in the U.S. by the end of 2026.
Mixed Reactions: Smooth Rides and Safety Concerns
Early feedback from participants was largely positive, with some users reporting multiple rides with “zero issues.” Musk reposted several firsthand accounts praising the experience.
However, some researchers and observers flagged potential safety concerns. According to reports:
A Tesla robotaxi briefly traveled the wrong way down a street in Austin.
Another was seen braking sharply near parked police vehicles.
Critics highlighted the lack of clarity regarding the vehicle’s FSD (Full Self-Driving) system behavior.
The system being tested, called FSD Unsupervised, is not yet available to the general public. Tesla’s current lineup includes Autopilot and FSD Supervised features, which have been linked to prior accidents according to NHTSA data.
Political and Regulatory Backlash
Ahead of the Austin launch, Tesla faced opposition from Democratic lawmakers in Texas and public safety advocacy groups, who called on the company to delay the service rollout citing safety and transparency issues.
Tesla Stock Reaction
Following the announcement and early feedback from the Austin launch, Tesla shares surged 10% in early trading Monday, adding more than $28 per share to its price.
This momentum comes at a time when Tesla is under increasing pressure to demonstrate real-world application of its autonomous technology, especially after years of ambitious promises and delayed timelines.
What’s Next for Tesla Robotaxis?
Elon Musk has confirmed that Los Angeles and San Francisco will be the next markets to receive robotaxi deployment. Further announcements are expected at Tesla’s upcoming events and earnings calls.
With competitors like Waymo, Baidu, and WeRide racing ahead, Tesla’s aggressive rollout strategy may help the company regain leadership in the autonomous mobility space.