Tesla Stock Surges 10% on Robotaxi Pilot Launch in Austin

Tesla Inc. shares jumped more than 10% following the limited launch of its robotaxi service in Austin, Texas. The pilot program, available to a select group of users, represents a critical milestone in CEO Elon Musk's long-promised autonomous ride-hailing vision. Rides are priced at a flat $4.20 fee within a geofenced area using specially marked Model Y vehicles equipped with safety drivers.

Musk publicly credited Tesla's AI and chip design teams for their decade-long development efforts. Early user reports on social media indicate smooth operation, with one tester completing 11 incident-free trips. However, analysts remain cautious about scalability challenges as Tesla trails competitors like Waymo in operational deployment.

Barclays maintained its $275 price target despite the market's bullish response, reflecting ongoing skepticism about Tesla's ability to rapidly scale autonomous driving technology. The Austin pilot serves as a proof-of-concept for Tesla's Full Self-Driving ambitions, but significant regulatory and technical hurdles remain before widespread commercialization.