TLDR
- Tesla stock rose 1.4% to $326.45 in premarket trading ahead of its June 22 robotaxi launch in Austin, Texas
- The service will start small with about 10 modified Model Y vehicles operating in limited areas with human teleoperators ready to intervene
- Texas Democrats have requested Tesla delay the launch until September, but the request will likely be ignored
- Wedbush analyst Dan Ives believes Tesla’s AI future could add $1 trillion to the company’s valuation over the next few years
- Tesla is expected to report disappointing Q2 delivery numbers on July 2, with Barclays predicting just 375,000 cars sold versus 444,000 last year
Tesla stock climbed 1.4% to $326.45 in premarket trading Friday as investors prepared for the company’s robotaxi service launch on June 22. The electric vehicle maker has seen shares surge 35% since its April 22 earnings call when management confirmed the June timeline.
CEO Elon Musk announced earlier this month that June 22 would mark the beginning of Tesla’s autonomous taxi service in Austin, Texas. The launch represents what analysts are calling a pivotal moment for the company’s future.
The initial rollout will be limited in scope. Tesla plans to deploy roughly 10 autonomous Model Y vehicles powered by its Full Self-Driving software. These cars will operate within restricted geo-fenced areas under remote human supervision.
It’s freaking hard NOT to run into a Tesla that’s either running on Robotaxi FSD or validating and calibrating. LFG TSLA pic.twitter.com/LSy5oUPLin
— Nikola Brussels (@NikolaBrussels) June 19, 2025
Human teleoperators will be ready to intervene if the self-driving vehicles encounter problems. The service will use unmodified recently produced Model Y vehicles rather than Tesla’s purpose-built Cybercabs, which aren’t expected until 2026.
Early customers appear to be hand-selected by Tesla. Special invites went out Friday morning to selected Tesla users, giving them permission to use the robotaxi service starting Sunday.
Political Opposition Emerges
Texas Democrats have publicly urged Tesla to postpone the launch until September 1. They want the company to wait until new safety laws take effect. Tesla appears unlikely to heed this request.
The National Highway Traffic Safety Administration is actively investigating Tesla’s autonomous driving systems following multiple incidents. This regulatory scrutiny adds another layer of complexity to the launch.
Democratic legislators expressed concerns about public safety. They questioned whether the current regulatory framework provides adequate oversight for autonomous vehicle operations.
Tesla’s approach reflects what some analysts call “cautious regulatory navigation.” The company is starting with a controlled test environment rather than a broad deployment.
Financial Stakes Run High
Wedbush analyst Dan Ives rates Tesla shares a Buy with a $500 price target. He believes Tesla’s AI future could add $1 trillion to the company’s valuation over the next few years.
“We view this autonomous chapter as one of the most important for Musk and Tesla in its history as a company,” Ives wrote in a Friday report. He noted that many skeptics thought this day would never come.
Analysts estimate robotaxis could cut travel costs by up to 70%. This technology could revolutionize urban transport and shift Tesla from a carmaker to a global mobility company.
The potential to redefine Tesla’s revenue model is substantial. Robotaxis could eventually surpass the traditional car business in terms of revenue generation.
Traditional Business Challenges Persist
Tesla faces headwinds in its core automotive business. The company is set to report second-quarter delivery numbers on July 2. Barclays analyst Dan Levy predicts just 375,000 cars sold, down from 444,000 a year ago.
Current consensus estimates from FactSet suggest about 400,000 deliveries. Even this figure would represent a decline from the previous year. Declining sales have injected volatility into Tesla stock recently.
Barclays’ Levy rates Tesla stock Hold with a $275 price target. His more conservative outlook reflects concerns about the traditional automotive business.
Tesla stock remains down about 25% year-to-date despite recent gains. Over the past 12 months, shares have climbed about 74%.
Investors have shifted focus from cars to artificial intelligence capabilities. This transition explains some of the recent stock price movements and analyst optimism.
Saxo’s Jacob Falkencrone warned that Tesla stock historically follows a predictable pattern around product launches. Shares typically rise on anticipation and fall when reality sets in.
The consensus rating for Tesla on TipRanks is Hold, based on 14 Buy, 12 Hold, and 9 Sell ratings. The consensus price target of $286.14 implies an 11.15% downside from current levels.
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