Tesla soared more than 10% in Monday's stock market as investors responded to Sunday's limited robotaxi ride-hailing service launch.
With EV sales falling and a limited pipeline of new vehicles, CEO Elon Musk and TSLA investors have bet heavily on robotaxi hopes. Tesla stock could possibly swing Monday on the robotaxi launch, but that process also could play out over days, weeks or longer as data trickles in and the market mulls whether the launch was a success.
Tesla stock soared more than 10% to as high as 357.54 intraday, before retreating slightly, advancing 8.2% to 348.86 during Monday's stock market. On Friday, TSLA advanced as high as 332.36 intraday before closing up 0.03% to 322.16. The stock entered Monday's stock market right at its 21-day exponential moving average and slightly above the 200-day moving average.
Uber Technologies could potentially respond to Tesla robotaxi news. The stock ended Monday's stock market up 1.7% to 85.19. The ride-sharing leader has a new base and is near an aggressive entry.
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Analysts Weigh In On The Robotaxi
Wedbush Securities analyst Dan Ives, longtime Tesla bull, took part in the limited robotaxi service launch Sunday in Austin, Texas.
Late on Sunday, Ives wrote that before experiencing the Model Y robotaxi, he "expected to be impressed but walking away from it, all there is to say is that this is the future."
"We took two approximately 15 minute rides around Austin and the key takeaways are that it was a comfortable, safe, and personalized experience. The ride itself was completely smooth, and it was indistinguishable that the car was driverless as there was never a moment in the vehicle where we felt as if it did something irrational," Ives said.
The analyst added that the "successful robotaxi launch is really just the beginning of the Tesla AI story" and that the limited launch "exceeded our expectations and offered a seamless and personalized travel experience that has lit the spark for autonomous driving."
Meanwhile, UBS analyst Joseph Spak on Monday raised the firm's price target on Tesla stock to 215 from 190, but kept a sell rating on the shares.
Spak wrote Monday that Tesla's autonomous ride-hailing opportunity is already priced into TSLA stock. The analyst values the ride-hailing service opportunity at about $99 per share and leaves UBS remaining cautious on Tesla's overall valuation.
Edward Jones Senior Analyst Jeff Windau noted Monday that "there are growth opportunities with new technologies, but the development time could take longer than expected," referring to autonomous ride-hailing services.
"Autonomous driving is a key technology for Tesla, and the testing will provide important performance data. Our positive outlook on the trial is balanced by current challenges in the EV market," Windau wrote Monday.
"We feel the significant premium being placed on shares is accounting for healthy earnings growth coming from the successful launch of multiple programs. In our opinion, near-term caution is warranted given that difficulties could arise with the development of new technologies, tariffs could raise expenses and impact operating profitability, and vehicle demand could fluctuate due to market competition," Windau added.
What The Robotaxi Rollout Looked Like
Tesla officially launched its limited robotaxi service in Austin, Texas, on Sunday, with the first ride officially taken with a flat fee of $4.20 charged. Participants, including several Tesla social media influencers, received "early access" invites sent Friday.
Tesla has geofenced the service, which excludes airports. A map of the geofenced area is available in the robotaxi mobile app. Tesla released the app Sunday afternoon. A "safety monitor" rides in the front passenger seat. There is also tele-assistance option, if human intervention has to take place.
The Tesla ride-hailing service runs from 6 a.m. to midnight every day of the week, but may be suspended for bad weather.
On Sunday, videos of robotaxi rides flooded Musk's social media platform X, formerly Twitter, as social media influencers took part in the rollout.
Meanwhile, Texas Gov. Greg Abbott on Friday signed a bill listing prelaunch requirements for robotaxi operators. The rule does not take effect until Sept. 1. Several Texas state legislators previously informed Tesla that a June 22 launch would be permitted only if the company provided proof of compliance with the safety rules.
The new requirements include proof of ability to operate within state traffic laws, according to NBC Austin affiliate KXAN. They must also provide the state Department of Public Safety with plans detailing how first responders should interact with the vehicles in various scenarios.
The new law also stipulates that robotaxi operators must verify that the vehicles are "capable of achieving a minimal risk condition if the automated driving system is rendered inoperable."
Tesla is a "known" autonomous vehicle, or AV, operator in Austin, according to Austin's Transportation and Public Works website. As of June 23, the EV giant is still in the "testing" phase of autonomous driving operation in the city.
Tesla Stock And Robotaxi Impact
At Monday's close, Tesla stock has now gained 0.6% in June.
TSLA ended Friday's stock market down about 1% last week. The stock advanced more than 10% on the previous week, reclaiming the 200-day moving average and 50-day line.
Overall, Tesla stock has moved 47% higher on robotaxi bets following the April 22 Q1 conference call. However, TSLA stock is down about 13.7% for the year. The stock has also retreated 29% from its all-time high of 488.54.
Tesla stock has a 21-day average true range of 5.36%. The ATR metric, available on IBD's MarketSurge charting tool, gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily stock market action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
Tesla stock has a 70 Composite Rating out of a best-possible 99. The stock also has a 91 Relative Strength Rating and a 59 EPS Rating.
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