Robotaxis drive Tesla stock way up

Following the weekend launch of the Tesla Model Y robotaxi, the company’s stock jumped nearly 10% — Image credit: Smith Collection/Gado/Getty Images

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Summary

Tesla stock performance

Tesla's stock rose nearly 10% on Monday, June 23 as a result of the company's robotaxi launch over the weekend.

Robotaxi launch

Tesla launched its Model Y robotaxi service in Austin, Texas, on June 22.

Competition with Waymo

Tesla's robotaxi service is expected to compete directly with Waymo, which is backed by Alphabet and already operates in several U.S. cities.

Full story

Following the weekend launch of the Tesla Model Y robotaxi, the company’s stock jumped nearly 10% on Monday, June 23. The Tesla robotaxi is expected to directly compete with Alphabet-backed Waymo, which already operates in several U.S. cities.

Stock jump

Tesla stock closed at $348.68 on June 23, its highest closing price in about a month and the largest gain in nearly two months.

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That rally also boosted the net worth of founder and CEO Elon Musk by about $12 billion.

The company’s stock has had a very volatile year following Musk’s polarizing involvement in the Trump administration. The stock has reached as high as $428.22 while dropping as low as $221.86 back in April.

The stock has now risen about 24% since June 5, when Musk’s feud with President Donald Trump over provisions in the president’s tax and budget bill reached a tipping point.

Tesla reported a 20% drop in auto revenue during its first-quarter report, with total revenue falling 9% from the same period a year earlier. Second quarter results are expected sometime in July.

Robotaxi launch

The launch of the new robotaxis came on Sunday, June 22, in Austin, Texas. The people who participated in the launch included longtime Tesla fans, as well as promoters and shareholders.

Many of those generate income from Tesla content on social media and were included in a thread on X.

These initial rides cost users $4.20 per ride, and users were not in the cars alone. Each car had a human safety monitor riding in the passenger seat.

Tesla also posted on X that Tesla users can experience full self-driving in their own vehicles for $3.33 per day.

Robotaxi competition

The biggest competition for Tesla’s new robotaxis will be Waymo, which currently operates in four cities, including Austin.

A major difference between the two is Tesla’s use of cameras and AI to navigate, whereas Waymo relies on extensive sensor pods with lidar, radar and ultrasonic sensors.

CNBC reports Musk plans to target Los Angeles and San Francisco as the next cities to get robotaxis. Those are two of the four cities where Waymo operates, the others being Austin and Phoenix. Waymo currently has plans to expand its service to Miami and Atlanta.

Cole Lauterbach (Managing Editor) and Devin Pavlou (Digital Producer) contributed to this report.

Tags: Elon Musk, Robotaxis, taxi, Tesla, Texas, Waymo

Why this story matters

Tesla's launch of its Model Y robotaxi and the resulting stock surge highlight competition and technological advancements in autonomous vehicles, as well as shifts in the company's financial standing and public perception.

Autonomous vehicle competition

The introduction of Tesla's robotaxi increases direct competition with existing operators like Waymo and could influence the broader market for self-driving cars.

Financial market impact

Tesla's stock price jumped nearly 10% following the robotaxi launch, affecting investor sentiment and CEO Elon Musk's net worth.

Technological approaches

Tesla's reliance on cameras and AI for navigation, as opposed to Waymo's use of lidar and sensors, reflects differing strategies in self-driving technology and could shape the future direction of the industry.

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Community reaction

Local reactions in Austin were mixed. According to several outlets, small groups of protesters voiced concerns about robotaxis, holding signs against the rollout. Others in the community—particularly Tesla fans and tech enthusiasts—welcomed the service, with some livestreaming their experiences and expressing excitement about Austin being a testbed for autonomous vehicles.

Context corner

Historically, autonomous vehicles have faced both regulatory and technological hurdles in the U.S. Texas offers a less stringent regulatory environment, partly explaining Austin's selection for the launch. This local experiment follows a wider trend of tech-forward urban mobility solutions, influenced by prior autonomous deployments by firms like Waymo and Cruise in other U.S. cities.

Policy impact

A new Texas law, taking effect September 1, will require state permits for self-driving vehicles and grant authorities power to revoke permits if a vehicle is deemed a public danger. This softens previously permissive state regulations and signals a cautious approach, reflecting bipartisan concerns about safety as autonomous vehicles become more common.

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Bias comparison

Media outlets on the left depict Tesla’s robotaxi launch as a fraught gamble, stressing the “immature system,” federal safety probes, and reliance on cameras alone, framing this as a risky overpromise that threatens public safety and cultural values tied to personal driving.
Not enough unique coverage from media outlets in the center to provide a bias comparison.
Media outlets on the right celebrate the event as a triumphant milestone, highlighting soaring shares and “super smooth” rides with enthusiastic user testimonials, portraying Tesla’s AI and cost-effective tech as groundbreaking and transformative.

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Media landscape

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Key points from the Left

Tesla has launched its Robotaxi service in Austin, Texas, allowing rides for a flat fare of $4.20, currently limited to invited guests and employees, with a public rollout date unclear.
Early rides revealed issues, including a Model Y swerving into oncoming traffic and exceeding speed limits, raising concerns about safety.
The National Highway Traffic Safety Administration is investigating Tesla's autonomous technology following accidents involving its vehicles, which has raised questions about the system's safety.
A Texas law requiring permits for self-driving cars will take effect on September 1, which may complicate Tesla's plans for its Robotaxi service.

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Key points from the Center

Tesla launched its long-awaited driverless robotaxis for paid rides in Austin, Texas on Sunday, with a small group of invited analysts, influencers and shareholders participating.
The National Highway Traffic Safety Administration is reviewing information from Tesla regarding the safety of its self-driving taxis in bad weather, while analysts said the 'low-key' robotaxi launch highlights Tesla's bid to compete with existing self-driving taxi operators.
Elon Musk congratulated Tesla's AI and chip design teams on the launch, calling it the 'culmination of a decade of hard work', and said customers would pay a '$4.20 flat fee' for rides in Tesla robotaxis.

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Key points from the Right

Tesla launched its driverless robotaxi service in Austin, Texas, on June 22, 2025, offering rides to a select group of early users for a flat fee of $4.20.
The robotaxis, which are 2025 Model Y cars, feature unsupervised self-driving technology but include a safety monitor in the passenger seat.
Elon Musk called the launch a "culmination of a decade of hard work" and stated the pilot currently has about 10 vehicles operating in a limited area.
Early riders, including social media influencers, reported experiences of smooth rides, despite some incidents of sudden braking.

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