Tesla Stock Jumps 10% After Robotaxi Launch in Austin | Elon Musk Confirms $4.20 Fare

Tesla Stock

Tesla Debuts Model Y Robotaxi Service in Austin

Tesla (NASDAQ: TSLA) made a significant leap in its autonomous driving ambitions with the official launch of its robotaxi service in Austin, Texas, on Sunday, June 22, 2025. The limited rollout features a fleet of Model Y vehicles operating without human drivers, providing early-access rides to select users.

CEO Elon Musk announced the launch on his social media platform X (formerly Twitter), calling it the result of “a decade of hard work.” Tesla stock surged 10% in Monday morning trading, following the news.

“Super congratulations to the @Tesla_AI software & chip design teams on a successful @Robotaxi launch! Culmination of a decade of hard work,” Musk posted.

Robotaxi Rides Priced at $4.20 Flat

Tesla offered the service to a select group of loyal customers, fans, and investors — many of whom are active content creators on platforms like X and YouTube. Riders were charged a flat fee of $4.20 per trip, a symbolic price point often used by Musk.

Initial feedback from users was largely positive, with one participant noting they completed 11 rides without any issues. Musk personally reshared several glowing reviews from testers.

Safety Concerns & Traffic Violations Observed

Despite the enthusiastic rollout, several observers and safety researchers flagged early incidents involving the new robotaxi fleet:

  • A Tesla robotaxi briefly drove the wrong way down a road in Austin, as reported by The Verge.

  • Another vehicle was seen braking abruptly near parked police cars, raising concerns about its environmental awareness.

  • Video clips shared on social media show uncertain or erratic vehicle behavior in some scenarios.

The current system, referred to as FSD Unsupervised, is being tested exclusively within the robotaxi program and has not yet been made available to the general public. Tesla continues to sell cars with Autopilot and FSD Supervised, which provide lane-keeping, navigation, and limited self-driving capabilities — though both systems have been linked to past incidents and federal investigations.

Tesla Stock Reacts Strongly

The market welcomed Tesla’s move into commercial robotaxis, with shares rising over 10% on Monday morning. Investors see this as a long-awaited step toward monetizing the company’s self-driving software, which has been under development for over a decade.

As of this writing:

  • TSLA shares were up $28.34, or 8.8%, in early trading.

  • Market sentiment is boosted by the potential to scale robotaxi services across the U.S.

Tesla’s entry into autonomous ride-hailing puts it in direct competition with Alphabet’s Waymo, which currently dominates the U.S. market with operations in Phoenix, San Francisco, and Los Angeles.

The Race Against Waymo and China’s Robotaxi Giants

While Tesla’s robotaxi debut marks a major milestone, it enters a field where rivals have already established scale:

  • Waymo is currently averaging over 250,000 autonomous rides per week and has surpassed 10 million trips.

  • Baidu’s Apollo Go, WeRide, and Pony.ai are scaling rapidly in China and other Asian markets, with Apollo Go alone crossing 11 million total trips.

Tesla’s advantage may lie in its vertically integrated hardware and software stack, but catching up will require fast scaling and continued software safety improvements.

What’s Next? Musk Eyes LA and San Francisco

Musk previously revealed that after Austin, Tesla plans to launch robotaxi services in Los Angeles and San Francisco — two of the most competitive and regulated markets for autonomous vehicles in the U.S.

In a recent interview, he stated Tesla hopes to deploy “hundreds of thousands, if not over a million” robotaxis by the end of next year.

Still, regulatory hurdles remain. Texas Democratic lawmakers and public safety advocates had urged Tesla to delay the launch, citing concerns about transparency and risk. These concerns may intensify as Tesla expands into other cities.

Key Takeaways

  • Tesla launched its first robotaxi service in Austin using autonomous Model Y vehicles.

  • Riders were charged a $4.20 flat fee, with Musk calling it a major success.

  • Tesla stock jumped 10% on investor optimism about scaling FSD technology.

  • Some observers raised concerns about traffic safety and AI decision-making.

  • Tesla now aims to bring the service to Los Angeles and San Francisco, competing directly with Waymo and Baidu.

NOTE 

Tesla’s Austin robotaxi launch marks a pivotal moment in its transition from electric vehicle manufacturer to full-stack autonomous mobility provider. While the service has sparked both praise and controversy, one thing is clear — Tesla is betting big on autonomy, and Wall Street is paying attention.

As competition heats up and more cities open their roads to driverless cars, the next 12 months could determine whether Tesla becomes the leader in this fast-growing space — or plays catch-up to more established players.