Elon Musk Video of Austin Robotaxi Sends Tesla Stock Higher
Elon Musk Video of Austin Robotaxi Sends Tesla Stock Higher
Tesla stock moved higher after Elon Musk shared a video claiming the company has started robotaxi rides in Austin without a safety driver inside the vehicle. The update comes at a time when competition in autonomous driving is heating up, especially as Waymo continues expanding its robotaxi service across the United States.
Shares of Tesla (TSLA) closed more than 4% higher following Musk’s comments, as investors reacted to what could be an important step forward for Tesla’s self-driving ambitions.
Tesla Says Robotaxis Are Running Without Safety Monitors
In a post on X (formerly Twitter), Elon Musk said Tesla has begun operating robotaxis in Austin with no safety monitor inside the car.
“Started Tesla Robotaxi drives in Austin with no safety monitor in the car,” Musk wrote. “Congrats to the Tesla AI team!”
The post followed videos shared by users showing Tesla vehicles driving autonomously without a human behind the wheel.
Tesla’s head of AI, Ashok Elluswamy, later added that the rollout is gradual. According to Elluswamy, Tesla is starting with a small number of unsupervised vehicles, mixed in with others that still include safety monitors. Over time, that ratio is expected to increase.
Tesla has not publicly confirmed whether local regulators formally approved this change, but the footage suggests at least limited authorization in Austin.
Waymo Expands Robotaxi Service to Miami
Tesla’s announcement came the same day Waymo, Alphabet’s (GOOG, GOOGL) autonomous driving unit, revealed a new expansion.
Waymo said it has officially launched robotaxi service in the Miami area, inviting its first public riders. The company noted that nearly 10,000 residents have already signed up, and rides will roll out gradually across an initial 60-square-mile service area.
Waymo also confirmed that trips to Miami International Airport are planned for the near future.
Before Miami, Waymo already operated robotaxis in Austin, Atlanta, Los Angeles, Phoenix, and the San Francisco Bay Area.
Waymo Still Leads the Autonomous Driving Market
Waymo currently holds a clear lead in real-world autonomous driving.
The company operates Level 4 autonomy, meaning its vehicles can drive fully on their own within defined areas. Tesla’s Full Self-Driving (FSD), by contrast, is still classified as Level 2, which requires human supervision.
Waymo has announced ambitious expansion plans for 2024, targeting cities including:
- Dallas
- Denver
- Detroit
- Houston
- Las Vegas
- Orlando
- San Antonio
- San Diego
- Washington, D.C.
- Nashville
It is also testing in dense global cities like New York, Tokyo, and London.
Waymo disclosed last year that it has around 2,500 robotaxis currently operating on public roads.
Tesla Pushes Forward on FSD and Global Approvals
Tesla’s robotaxi fleet remains smaller, but the company is trying to close the gap.
At the World Economic Forum in Davos, Musk said Tesla expects Supervised Full Self-Driving approval in Europe and China soon.
“We hope to get Supervised Full Self-Driving approval in Europe, hopefully next month, and then maybe a similar timing for China,” Musk said.
Tesla’s robotaxis are currently operating in Austin and the San Francisco Bay Area, though most vehicles still require safety drivers. The Austin video suggests that requirement may now be changing at least in limited cases.
Why the Safety Driver Removal Matters
According to Morgan Stanley analysts, removing the safety driver is a major milestone for Tesla’s robotaxi business. It significantly lowers operating costs and makes large-scale deployment more realistic.
Morgan Stanley expects Tesla to have around 1,000 robotaxis on the road by the end of the year, still well below Waymo’s current footprint but a meaningful increase for Tesla.
If Tesla can scale unsupervised driving beyond Austin, it could become a key growth driver for the company.
What to Watch Next for Tesla Investors
Tesla is expected to share more details about:
- Full Self-Driving progress
- Robotaxi expansion
- Its purpose-built Cybercab robotaxi
during its fourth-quarter earnings report on January 28, after the market closes.
For now, Musk’s Austin robotaxi video has reignited investor interest but the long-term race for autonomous driving leadership is still wide open.
Disclaimer
This article is for informational purposes only and does not constitute financial, investment, or legal advice. Stock market investments involve risk, and past performance does not guarantee future results. Always conduct your own research or consult a qualified financial professional before making investment decisions.
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