Tesla shares climbed nearly 5% to their highest level in almost a year after Elon Musk confirmed that the company is now testing robotaxis with no human safety monitor inside the vehicle. Musk said the tests involve cars operating with no occupants at all, marking a significant step toward fully autonomous driving.
Much of Tesla's $1.53 trillion valuation rests on investor confidence in its self-driving technology and future robotaxi business, even though most of the company's revenue still comes from selling electric vehicles. The stock's rally reflects growing optimism that Tesla is making tangible progress toward commercial driverless services.
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Self-driving technology and future robotaxi business
Tesla previously launched a limited robotaxi pilot in Austin, Texas, using modified Model Y vehicles running Full Self-Driving software. Those early tests were geo-fenced and required a human safety monitor in the front passenger seat. Removing that requirement suggests the company is moving closer to broader deployment, including its planned Cybercab launch next year.
The update aligns with expectations Tesla set during its recent earnings call, while caution remains over regulatory approval and technical challenges. Tesla still trails Alphabet's Waymo, which currently leads the United States market with thousands of commercial robotaxis and hundreds of thousands of paid rides each week.