2025-06-23T13:45:19Z
- Tesla launched its robotaxi service in Austin on Sunday as an invite-only service for now.
- The EV maker’s stock jumped more than 4% at the open on Monday.
- CEO Elon Musk has promised millions of robotaxis by 2026, but analysts say execution remains key.
Tesla stock opened higher on Monday following the long-awaited launch of its robotaxi services in Austin.
The EV maker unveiled its robotaxi service on Sunday, giving small group of users in Austin access to the driverless rides for a flat $4.20 fee.
Shares gained more than 4% in the first few minutes of trading at about $334.
In a Monday note, analysts at UBS raised their target price on the stock by $25 to $215 while maintaining a “Sell” rating.
“Recall, Elon Musk indicated that autonomy is one of two (along with humanoid robots) main drivers of the stock’s long-term value. While Tesla appears to be well positioned, we believe the opportunity is already priced into the stock,” they wrote.
“We built out our robotaxi model and believe the opportunity is worth ~$99/share, which when considering other parts of TSLA’s business, still leaves us cautious on TSLA’s overall valuation.”
Musk teased the launch of the robotaxi earlier this month, showcasing a driverless Tesla Model Y emblazoned with the Cybertruck-style branding. “Beautifully simple design,” he posted on X.
The rollout follows years of Musk promising multiple times that the robotaxi was just around the corner. Meanwhile, competitors such as Alphabet’s Waymo have already demonstrated their autonomous taxis in multiple cities.
Lawmakers in Texas have been seeking tighter regulation of robotaxis, while some technical hurdles remain unresolved.
Tesla stock has struggled in recent months amid declining vehicle sales, but Monday’s rise reduced the loss to about 12% this year. Over the past 12 months the shares have gained more than 80%.
Analysts have said that Tesla’s low-cost, factory-scalable model could still give it an edge in the autonomous driving battle.