Tesla (TSLA) stock rallied on Monday after the EV manufacturer announced it had begun testing its driverless robotaxi service. In a post to X on Sunday, Elon Musk said the electric-vehicle maker was testing its robotaxis without safety monitors in the front passenger seat. “Testing is underway with no occupants in the car,” Musk wrote, sparking a rally for the stock to start Monday.
Tesla launched a limited robotaxi service in Austin, Texas, back in June, using modified Model Y vehicles equipped with Full Self-Driving. Early operations were limited to that region and included a human “safety monitor” in the passenger seat. However, the Robotaxi fleet has expanded in the past two months. Tesla shareholders have been bullish on the AI-trained robotaxis and other AI applications, saying they will unlock a new era of stock growth for the car maker.
Tesla (TSLA) rose 3.56% on Monday, with its stock now up over 17% in the last 30 days. Wall Street has been mixed on the EV giant as of late, with several forecasts being cut for the stock. Last week, Andrew Percoco of Morgan Stanley downgraded Tesla to Equal-weight from Overweight, reversing the firm’s previously bullish position on the stock. Despite the downgrade in rating, Percoco upped the firm’s Tesla price target to $425 from $410, sending a mixed message.
Robotaxi Production Ramps Up Heading into Big Year for Tesla (TSLA)
Additionally, other analysts are betting that Tesla will intensify testing of the Robotaxi and rapidly deploy driverless taxis as it prepares to launch its Cybercab model next year. “The news Tesla is testing robotaxis without the safety monitors is in line with our expectations that the company is making progress in its testing, in line with management’s statements during the third quarter earnings call,” said Seth Goldstein, senior equity analyst at Morningstar. “The market is cheering the progress, sending shares higher today.”
Also Read: Cathie Wood Sells SOFI Stock After 77% YTD Rally: Peak Over?
Meanwhile, analysts like Wedbush’s Dan Ives remain bullish on Tesla shares, and he believes the automaker’s AI future is where investors should be looking. “In my opinion, it’s going to be the most important chapter ever in Tesla’s story,” Ives said from the Yahoo Finance Invest event in New York last week. Ives has called the passage of Musk’s pay package a “bright green light” for Tesla’s AI and autonomous tech plans, and has an Outperform rating on the stock and a Street-high $600 price target.
At press time, TSLA is trading near the top of its 52-week range and above its 200-day simple moving average.