Prime Highlights
- Tesla has begun testing fully driverless Robotaxi vehicles on public roads in Austin, marking a major step forward in its autonomous driving plans.
- The announcement boosted investor confidence, pushing Tesla shares to their highest level of 2025.
Key Facts
- Tesla stock rose 3.6% to $475.31, taking its year-to-date gains to 18% and placing it close to its all-time high.
- The Austin Robotaxi fleet, currently under expansion, is expected to grow from under 30 vehicles to around 60 by the end of 2025.
Background
Tesla shares closed at their highest level of 2025 on Monday after the company confirmed it has begun testing fully driverless Robotaxi vehicles on public roads in Austin, Texas. The development marks a key milestone in Tesla’s long-running push toward autonomous mobility.
The electric vehicle maker’s stock rose 3.6% to $475.31 by the end of trading, extending its gains to 18% so far this year. The share price now sits just 1% below its all-time record set in December 2024, reflecting renewed investor optimism around Tesla’s self-driving ambitions.
Over the weekend, Tesla executives confirmed that vehicles in the company’s Austin Robotaxi fleet are now operating without human occupants. Chief executive Elon Musk said in a post on X that testing is underway with “no occupants in the car,” moving beyond the safety-driver phase that began earlier this year.
Tesla launched a limited Robotaxi-branded ride-hailing service in Austin in June, initially operating with safety supervisors on board. The company later introduced a similar service in the San Francisco Bay Area, though both programs remain restricted in scope.
Texas law currently allows autonomous vehicle companies to test and operate ride-hailing services on public roads as long as vehicles comply with traffic regulations. This regulatory environment has helped make Austin a focal point for Tesla’s autonomous vehicle trials.
However, the company has acknowledged challenges. Tesla disclosed to federal regulators that seven collisions occurred within its Austin Robotaxi fleet as of mid-October. The incidents were described as non-severe, and the vehicles involved were equipped with automated driving systems alongside human safety supervisors.
Looking ahead, regulatory conditions in Texas are set to change in 2026, when autonomous vehicle operators will be required to obtain authorization from the state’s Department of Motor Vehicles for commercial operations. In California, regulators confirmed Tesla has not yet applied for permits to conduct driverless testing or commercial robotaxi services.
Despite competitive pressure from established autonomous ride-hailing operators in the U.S. and Asia, Tesla’s latest move signals growing momentum in its effort to turn autonomous driving into a core business line.