Tesla jumps 10% after the limited robotaxi launch generates positive reviews

Tesla (NASDAQ:TSLA) soared in Monday trading after the launch of the company’s robotaxi service in Austin, Texas. While the robotaxi launch was limited in scope and in terms of providing full autonomy without a human monitor, the early reviews have been generally positive.

Well-known Tesla (NASDAQ:TSLA) enthusiast Sawyer Merritt described the robotaxi experience as “smooth and comfortable”, while Wedbush Securities analyst Dan Ives said his test rides were very impressive. Other reviews noted their robotaxi rides included successfully navigating areas with road construction, speed bumps, and narrow lanes. So far, the autonomous rides are not open to the public, which will be a bigger test of reliability and ease of use.

On social media site X, Elon Musk highlighted that the AI chip and software for the robotaxi service was built from scratch by Tesla (TSLA). Meanwhile, the company continues to forecast that the robotaxi will greatly increase safety for vulnerable road users, such as pedestrians and cyclists.

Currently, Waymo (GOOG) is making more than 250,000 paid trips a week in San Francisco, Los Angeles, Phoenix, and Austin, which is a level Tesla (TSLA) thinks it can relatively quickly scale to as it expands the service to new cities.

Shares of Tesla (TSLA) were up 10.2% at 11:25 a.m. to trade at their highest level since late May. The EV stock is still down double digits on a year-to-date basis.