Tesla (TSLA) Stock: Robotaxi Service Expansion Drives Shares Higher

TLDR

Table of Contents

Tesla’s robotaxi service will expand to a larger service area in Austin this weekend, with San Francisco Bay Area launch expected in 1-2 months
Tesla stock jumped 4.7% to $309.87 Thursday after Elon Musk announced expansion plans on X
The company launched its limited robotaxi service on June 22 in Austin with hand-selected riders and safety monitors
Tesla stock is down about 4% since the initial robotaxi launch but up 30% since April conference call
Analysts assign $250 of Tesla’s $410 price target to self-driving technology, representing roughly 60% of company valuation

Tesla stock climbed 4.7% to $309.87 Thursday after CEO Elon Musk revealed plans to expand the company’s robotaxi service. The announcement came through posts on X, where Musk outlined expansion timelines for both Austin and California markets.

The electric vehicle maker launched its robotaxi service on June 22 in Austin, Texas. The initial rollout was limited to a hand-selected group of riders with safety monitors in the front passenger seat.

Musk wrote on X that the service will expand to a “larger service area in Austin this weekend.” He also indicated that Tesla plans to launch in the San Francisco Bay Area within the next month or two.

Waiting on regulatory approvals, but probably in a month or two
— Elon Musk (@elonmusk) July 10, 2025

The California expansion depends on regulatory approval. Tesla currently holds a permit to test self-driving cars with a safety driver in the state but needs additional authorization for commercial operations.

Tesla stock had fallen about 8% since the original robotaxi launch in late June. Political tensions between President Trump and Musk contributed to the decline, though the stock remains up 24% since Tesla’s October 10 robotaxi event.

The broader market moved higher alongside Tesla. The S&P 500 gained 0.3% while the Dow Jones Industrial Average rose 0.4%.

Analyst Valuations Highlight Robotaxi Importance

Wall Street analysts place heavy weight on Tesla’s self-driving technology. Morgan Stanley analyst Adam Jonas assigns roughly $250 of his $410 price target to autonomous driving capabilities.

RBC analyst Tom Narayan says self-driving cars account for about 60% of his Tesla valuation. Both analysts maintain Buy ratings on the stock, with Narayan targeting $319 per share.

Wedbush Securities analyst Dan Ives called Musk’s expansion comments “positive relative to the recent shift in investor sentiment regarding Tesla’s autonomous vehicle efforts.”

Tesla’s long-term robotaxi strategy involves existing Tesla owners adding their cars to a ride-hailing network. This model resembles Airbnb’s approach but applied to transportation services.

Recent Performance and Delivery Data

Tesla reported 384,122 second-quarter vehicle deliveries last week. The figure came in slightly below analyst expectations but avoided deeper concerns about demand weakness.

Deliveries dropped 13.5% compared to the same period last year. Vehicle production remained nearly flat year-over-year at 410,831 EVs.

Analysts now forecast full-year deliveries declining 7% to 1.66 million vehicles. This represents a shift from Tesla’s earlier prediction of 20%-30% growth in 2025.

The company is promoting the $7,500 EV tax credit on its website before the benefit expires on September 30. This marketing push aims to boost third-quarter sales.

Tesla stock has gained 30% since the April 22 first-quarter conference call. The rally reflects investor optimism about robotaxi prospects despite broader delivery challenges.

Shares remain down 23% for the year and trade 36% below their all-time high of $488.54. The stock’s 21-day average true range sits at 4.58%, indicating high volatility.

Tesla will report second-quarter earnings on July 23. The company has scheduled its annual shareholder meeting for November 6, 2025

Musk also announced Thursday that Grok AI will integrate into Tesla vehicles “very soon” with a target of next week. His AI company xAI launched Grok 4 on Wednesday evening.

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