This article first appeared on GuruFocus.
Tesla (NASDAQ:TSLA) climbed about 2% on Wednesday morning after Elon Musk tweeted late Tuesday that the Austin robo-taxi fleet may roughly double next month.
The move followed Musk posts about Tesla’s custom AI chips that helped shares jump about 7% on Monday.
Tesla launched a limited robo-taxi service in Austin in June with safety monitors in front passenger seats and has expanded the area served.
Investors increasingly view the stock as driven by AI ambitions, robo-taxis and humanoid robots, rather than vehicle sales alone.
Shares are up about 4% in 2025 so far and 24% over 12 months. Deliveries are projected under 1.7 million in 2025, down from just over 1.8 million in 2024; EPS forecasts fall to $1.65 from $2.42.
Operations remain relatively small, including an invite-only San Francisco test and permit applications in Las Vegas, and no robo-taxis operate without a human in the front seat.
Analysts say cautious scaling is prudent as investors weigh AI upside against near-term sales and earnings headwinds.