Riding on the oncoming traffic: how Tesla's robotaxi launch went, sending shares up 8%

Tesla's stock posted its highest daily gain in two months after the launch of the first robotaxis began running in Texas. Investors, analysts and Tesla fans were invited to the first rides, and they posted footage of their trips and shared their impressions. Not everything went smoothly: in one of the videos, the cab drove into the oncoming lane and crossed a double solid line, and in another, it ignored a speed limit sign.

Tesla shares rose 8.2% to $348.7 at the close of trading on June 23. This became the maximum closing price for almost a month - after May 29. And during the day, the securities rose by 11%, which became the biggest dynamics since April 9, wrote Bloomberg. Investors reacted positively to Tesla's modest robot cab launch - despite reports that the autopilot violates traffic laws.

The first public test, which began June 22, involves about 10 to 20 cars running in a limited area of Austin, Texas. The cost per ride is a flat $4.2. 

Retail investors and bloggers were invited to the robotaxi launch on Sunday and shared their impressions live, Bloomberg reported. Also on Sunday, robotaxis tried by some analysts.

In one video, Tesla fan Herbert Ong enraptured by the car's speed and ability to self-park. Another Influencer under the nickname Zack noted that the ride was even smoother than with a human driver. Tesla investor Sawyer Merritt, author of an account dedicated to the company, called the experience «awesome.»

However, there were also problems during the first public tests. In the eighth minute of video shot by investor and former Tesla podcast host Rob Maurer, the car is seen pulling out of the left-turn lane at an intersection. The steering wheel then began to jerk from side to side, eventually causing the Tesla to continue straight and end up in the oncoming lane. Returning to its own lane, the robotaxi crossed the double solid line.

In two other posts in X, passengers in the unmanned Model Y shared videos of the cars speeding. For example, one car, in which Tesla investor Sawyer Merritt was riding, reached 35 mph (56 km/h) shortly after passing a sign with a 30 mph (48 km/h) limit.

Representatives for Tesla and Austin police did not respond to Bloomberg's requests for comment on the video. However, the U.S. National Highway Traffic Safety Administration (NHTSA) confirmed that it was aware of the incidents that hit social media and that it was gathering additional information, including through a request to Tesla.

«After analyzing these reports and other relevant information, NHTSA will take all necessary steps to ensure roadway safety,» the agency said Monday.

Barclays analyst Dan Levy, in a note quoted by Bloomberg, said the debut «generally went smoothly» and without major disruptions, and the launch of the commercial service was a «key milestone» for optimistic Tesla investors.

«While Tesla appears to be well-positioned, we believe this opportunity [successful robotaxi operations] is already priced into the stock price,» wrote UBS analyst Joseph Spack in a note to investors on Monday. His recommendation is  to sell the automaker's securities. At the same time, he raised his target price from $190 to $215, still 38% below the current share price.

Guggenheim analyst Ron Juzikov noted that the weekend's robotaxi event was not a massive event, but he believes it was enough to satisfy investors in the short term. He emphasized that the focus should be on the pace of expansion of the service. «Ultimately, the baby steps taken on Sunday in Austin were a good foundation and showcased the work done by Tesla's AI team for the launch. But far more important will be what happens after the Influencers leave. We believe the pace of expansion should be closer to a sprint by the end of this year to meet the ambitious expectations already built into Tesla's valuation,» the analyst wrote in a note quoted by CNBC.

Wall Street's chief optimist about Tesla, Wedbush analyst Dan Ives, said after the test drive stated that it exceeded his expectations. «We already thought it was going to be impressive,» Ives noted. - But after the ride, we can say one thing: this is what the future is all about.» After the test, Ives reiterated an Overweight rating for Tesla stock, equivalent to a buy recommendation, and his $500 target price remains the highest on Wall Street.

For the company, the robotaxi launch is a modest start to an ambitious direction that CEO Elon Musk calls the future of Tesla's business, Bloomberg emphasizes. And MarketWatch recalls that in a 2024 speech to shareholders, Musk promised that in the future Tesla owners could turn their electric cars into robotaxis, combining the capabilities of home-rental service Airbnb and cab booking service Uber.

«In the segment where our customers will own the cars, it will be like Airbnb: you can add or remove your car from the fleet whenever you want,» Musk said. - You go away for a week, you add your car to the fleet with one tap on the app, and while you're gone, it just makes money for you.

According to the Tesla CEO, the car owner's income from the cab would then exceed the monthly car payment.

This article was AI-translated and verified by a human editor