Tesla Shares Rise on Robotaxi Expansion as Investor Optimism Reignites
Tesla Inc. (NASDAQ: TSLA) shares climbed nearly 3% on Thursday, outperforming a stagnant Nasdaq, after CEO Elon Musk announced a faster-than-expected expansion of the company’s robotaxi service. The stock’s rally suggests renewed investor confidence in Tesla’s long-standing autonomous vehicle ambitions, even as the company faces declining deliveries and heightened political scrutiny around Musk.
Musk revealed on social platform X that Tesla’s pilot robotaxi program in Austin — launched less than three weeks ago — will expand this weekend. He also confirmed plans to roll out the service in the Bay Area within the next one to two months, subject to regulatory clearance.
Gene Munster, Managing Partner at Deepwater Asset Management, said the expansion timeline surpassed his expectations. “I anticipated the Austin fleet would scale in late July and another city would come online in December,” Munster noted, highlighting the accelerated pace.
According to Munster, the focus isn’t on immediate size but rather on fast iteration to build scale. “Over the next six months, the number of vehicles and cities is less critical than the speed of expansion,” he said.
The stock’s movement also reflects a temporary shift in attention away from Musk’s political controversies. His recent involvement with President Trump’s administration and fallout from the “One Big Beautiful Bill Act,” which reduced EV tax credits, had cast a shadow over Tesla’s outlook.
Investor concern has grown over whether Musk’s growing political engagement — including the launch of his “America Party” — is diverting focus from Tesla’s core automotive operations. Coupled with falling vehicle deliveries, this has added to volatility in the company’s stock. Still, the market’s renewed attention on autonomy indicates that investors remain willing to tolerate Musk’s unpredictability if tangible progress in self-driving technology continues.
While Tesla’s robotaxi service has yet to generate meaningful revenue, the company’s push into autonomous transport is shaping a narrative around future growth potential. With early momentum in Austin and possible expansion to California, Tesla aims to secure a first-mover advantage in what it envisions as a lean, high-margin business model.
