Tesla (TSLA) stock has seen a significant upswing for the third consecutive trading session, driven by the increasing momentum in its robotaxi initiative and a de-escalation in tensions between CEO Elon Musk and former President Donald Trump.
Tesla’s Strategic Robotaxi Rollout
Tesla has recently been recognized as an autonomous vehicle operator on Austin’s Transportation and Public Works website. This listing comes ahead of the anticipated June 12 launch of Tesla’s robotaxi service, marking a crucial milestone for the electric vehicle giant. The news, initially reported by Tesla-focused blog Teslarati, aligns Tesla with other prominent autonomous vehicle operators such as Alphabet’s Waymo, Amazon’s Zoox, and Hyundai’s Motional.
The positive sentiment surrounding Tesla’s listing has contributed to a 5.7% rise in the company’s stock, marking its third straight session of gains. This increase has helped the stock recover most of its losses from the previous week.
Operational Details and Safety Measures
Tesla’s appearance on the Transportation and Public Works site is perceived as a strong indicator of the imminent commencement of its robotaxi operations. The company has confirmed reports on social media platform X about its ongoing tests in Austin, including a Model Y vehicle prominently branded with “Robotaxi” and accompanied by a chase vehicle.
Initially, Tesla plans to deploy 10 to 20 robotaxis in unsupervised testing, with plans to scale up contingent on successful outcomes. To ensure safety, Tesla will employ remote tele-operators who can intervene in case a robotaxi encounters an incident or traffic issue, allowing for human oversight when necessary. While this safety measure is seen as a positive step, it could potentially slow the expansion of Tesla’s robotaxi fleet.
Musk-Trump Dynamics and Stock Implications
Musk’s previously cordial relationship with Trump was viewed as beneficial for Tesla’s autonomous vehicle ambitions. However, a recent public exchange between the two figures led to a decline in Tesla’s stock last week. The recent recovery in stock price is partly attributed to Trump’s conciliatory remarks about Musk and Tesla earlier this week.
During a White House event, Trump expressed openness to communicating with Musk, stating, “I’d have no problem with it,” when asked about a potential conversation. Trump also mentioned he had no intention of selling the Tesla Model S he acquired in March, following Musk’s unprecedented gesture of bringing a fleet of Tesla electric vehicles to the White House.
When questioned about Musk’s rumored drug use, Trump dismissed the notion, saying, “I don’t think so, I hope not.”
Tesla’s ongoing robotaxi developments and the cooling tensions between Musk and Trump are factors contributing to the recent positive movement in Tesla’s stock. As the company continues to navigate the regulatory and operational landscapes, investors remain keenly focused on its progress in the autonomous vehicle sector.
Note: This article is inspired by content from https://finance.yahoo.com/news/tesla-stock-higher-on-robotaxi-momentum-musk-trump-feud-cooling-140045751.html. It has been rephrased for originality. Images are credited to the original source.