Tesla (TSLA) stock is trading higher on Wednesday after the company announced its next wave of Robotaxis. Elon Musk tweeted late Tuesday that the Austin, TXfleet may roughly double next month. The move follows Musk’s posts about Tesla’s custom AI chips that spurred a 7% Tesla share rally on Monday.
The Austin Rovotaxi fleet launched back in June and saw great success early on. The project has fueled bullish momentum for investors in TWKA stock, despite Tesla’s poor sales in 2025. Tesla shareholders, however, believe AI-trained robotaxis and other AI applications, such as humanoid robots, will unlock a new era of stock growth for the car maker.
Tesla stock climbed just under 2% in early trading on Wednesday, but the rally was quickly halted by a poor report out of the EU. As part of a slide that has gone on throughout the year, Tesla’s EU, UK, and EFTA registrations (the proxy for sales) dropped 49% in October to 6,964. Europe is not the only huge market where Tesla is in trouble, either. Tesla’s monthly sales in China hit a three-year low in October at 26,006.
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Furthermore, Tesla’s CEO also discussed a new development this past weekend, one that involves his firm exploring the chip business more actively. Talking about it in-depth, Musk shared how Tesla is actively exploring the AI chip business, and it has been years since the company has been working on the same narrative. Moreover, Musk shared how the Tesla team has designed several million chips over the years, and it continues to explore the domain more lucratively.
“Most people don’t know that Tesla has had an advanced AI chip and board engineering team for many years,” the CEO said. “That team has already designed and deployed several million AI chips in our cars and data centers. These chips are what enable Tesla to be the leader in real-world AI.” This new narrative is helping investors gain clarity on Tesla’s stock goals, with investors eager to explore the stock more eagerly. Per TipRanks TSLA stats, Tesla is aiming to hit $600 in the near future.