Tesla’s Stock Surges as it Launches ‘Robotaxi’ Service in Austin
Tesla’s stock (TSLA) saw a significant surge of up to 10% this morning following the controversial launch of its ‘Robotaxi’ service in Austin, Texas. Investors are betting on the automaker catching up to Waymo’s lead in the autonomous driving space.
Over the weekend, Tesla introduced its ‘Robotaxi’ service in Austin, deploying a fleet of vehicles equipped with the latest “Supervised Full Self-Driving” software. These vehicles are supervised by Tesla employees in the front passenger seat, with a modified door button acting as a kill switch.
The service is currently limited to a specific area in South Austin and is accessible through an invitation-only app, primarily sent to Tesla influencers. This launch puts Tesla in direct competition with Waymo, which has been offering driverless rides since 2018.
While Waymo has been providing completely driverless rides without in-car supervisors for years, Tesla is still in the early stages of implementing this technology. Despite the clear lead held by Waymo, Tesla’s stock soared by 10% today, indicating investor confidence in the company’s ability to compete in the driverless ride market.
Tesla’s stock is currently trading at over 200 times its earnings, reflecting investor optimism about the company’s potential to expand the autonomous driving market. Tesla has stated that its system does not require expensive specialized equipment or extensive mapping of service areas, although it was seen conducting extensive mapping activities in Austin before the launch.
However, there is still skepticism surrounding Tesla’s ability to achieve fully autonomous driving without human supervision. The company’s Robotaxi war room includes remote teleoperation, suggesting that there are still safety concerns to address.
While Waymo has been operating driverless rides successfully for several years, Tesla is facing challenges in scaling up its autonomous driving technology. The launch of the ‘Robotaxi’ service has not yet demonstrated significant progress towards achieving unsupervised self-driving in consumer vehicles.
Overall, Tesla’s foray into the autonomous driving market is met with both excitement and caution. As the company continues to develop its technology and navigate the challenges of scaling up, the future of autonomous driving remains uncertain.
