Elon Musk, co-founder of Tesla, has announced that the EV maker’s robotaxi service will see an expansion in coverage this weekend. Musk wrote on his social media platform X Wednesday night that the EV giant’s robotaxi ride-hailing service will be “expanding” to a “larger service area in Austin this weekend.” In addition, Musk added that Tesla plans to have robotaxi Model Y vehicles on the roads in the Bay Area of California soon.
In the past month, Tesla stock has been in a downward trend, with short periods of upside due to news around the company. In June, the initial robotaxi launch in Austin, TX, was a success, sending shares upwards. Musk’s reported recommitment to the company after a venture in politics also enticed investors. However, he eventually backpedaled and announced a potential new political party, sending TSLA shares down again. In the last 30 days, the stock is down 7.4% as a result of the inconsistency.
Earlier this week, Tesla (TSLA) stock short-sellers capitalized off of the EV giant’s downspell. However, that period could come to an end soon with potentail Robotaxi expansion. The stock is up over 2% today following Musk’s Wednesday announcement. Should the Robotaxi expansion go off without a hitch over the weekend, TSLA could be a promising investment ahead of next week and the coming month.
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Analysts Remain Mixed on Tesla (TSLA) Stock Future
Wedbush Securities analyst Dan Ives, a longtime Tesla bull, wrote Thursday that Musk’s comments were “positive relative to the recent shift in investor sentiment regarding Tesla’s autonomous vehicle efforts.” The analyst is certain that the stock will only perform well if Musk keeps his focus on Tesla and further develops Robotaxi. “Tesla (shares) needs Musk as CEO and its biggest asset and not heading down the political route yet again. While at the same time getting on Trump’s bad side. It would also not shock us if the Tesla board gets involved at some point, given the political nature of this endeavor, depending on how far Musk takes it,” he added.
TSLA stock is trading in the middle of its 52-week range and below its 200-day simple moving average. While Ives is bullish, analysts at CNN are on the flip side, rating Tesla (TSLA) a 2/10 stock choice. Out of 55 analysts surveyed, 44% suggest buying the stock, 36% advise holding, and 20% opt for selling.