Key Takeaways
- On Friday, Nevada’s Transportation Authority granted autonomous vehicle permits to Tesla, Waymo, and Aviari
- Tesla received authorization to operate up to 5,000 autonomous taxis across Nevada within the coming year
- Waymo and Aviari were each granted permits for 1,000 autonomous vehicles
- TSLA shares surged 5.1% Friday but remain down 19% since the beginning of the year, hovering near $362
- Following the permit approval, Citizens analyst Andrew Boone maintained a Market Perform rating on the stock
Friday marked a significant milestone for Tesla as Nevada’s Transportation Authority delivered a unanimous decision approving commercial autonomous taxi permits for Tesla, Alphabet’s Waymo, and Aviari.
Among the three companies, Tesla secured the most substantial authorization. The electric vehicle manufacturer can now deploy as many as 5,000 completely autonomous vehicles throughout Nevada’s roadways during the next year. Meanwhile, both Waymo and Aviari obtained clearance for 1,000 vehicles apiece.
TSLA shares climbed 5.1% during Friday’s session. As of Monday’s premarket trading, the stock dipped 0.2% to $362.07. Despite Friday’s rally, TSLA has declined 19% year-to-date entering the current week.
The electric carmaker initially rolled out its autonomous taxi service in Austin, Texas during June 2025. Expansion has proceeded gradually since the launch. The service presently operates in several Texas cities, including Dallas and Houston.
Nevada’s authorization represents among the most substantial single-market autonomous taxi permits Tesla has secured to date. However, obtaining regulatory approval and actually deploying a 5,000-vehicle fleet are vastly different challenges.
Tesla’s Competitive Advantages in Autonomous Transportation
Tesla brings significant competitive strengths to this market. The automaker has operated its autonomous driving technology across hundreds of thousands of its vehicles for multiple years. Additionally, Tesla produces its own automobiles, enabling faster scaling of robo-taxi operations at reduced costs compared to rivals who must acquire vehicles from external suppliers.
Despite these advantages, Citizens analyst Andrew Boone maintained a Market Perform rating on Tesla after the announcement. With a P/E ratio standing at 336.4 and a market capitalization near $1.43 trillion, InvestingPro data suggests the stock trades above its Fair Value.
GLJ Research maintained its Sell rating on the company, citing a second-quarter operating margin of merely 1.4% alongside negative free cash flow totaling $1.1 billion.
TD Cowen preserved its Buy rating, emphasizing Tesla’s strategic position within the autonomous vehicle industry.
Additional Tesla Developments
Tesla also disclosed a recall affecting nearly 3 million vehicles in China, scheduled to begin September 25. The recall encompasses the Model 3, Model Y, Model S, and Model X due to emergency door release handles that may prove difficult to locate during emergencies. The company intends to address the problem through warning labels and an over-the-air software update.
Regarding commercial initiatives, Tesla has established a partnership with Einride to deploy 500 Tesla Semi trucks for Amazon throughout North America.
Nevada additionally granted Uber authorization for 1,000 autonomous vehicles through its partners Motional and Zoox. Uber introduced its inaugural European autonomous ride service in Zagreb recently, utilizing Pony.ai drivers and Verne-owned vehicles. Citizens maintains a Market Outperform rating on Uber with a $100 price target, anticipating autonomous vehicle supply on Uber’s platform to increase substantially in Q4 2026 and throughout 2027.
Tesla’s autonomous taxi service in Austin is scheduled to become publicly available in August.
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