Tesla Robotaxi on the Road: Can It Challenge Waymo Leadership?

TradingKey – Tesla shares surged 8.23% on Monday, adding nearly $100 billion in market value, after the company officially launched its Autonomous Taxi (Robotaxi) service in Austin, Texas — with plans to expand to multiple cities in the coming months.

CEO Elon Musk announced that vehicle owners will be able to add their personal Teslas to the robotaxi fleet, allowing cars to autonomously pick up passengers and generate income when not in use — potentially earning more than the monthly loan or lease payment.

Though delayed by 10 days and still requiring a safety driver for now, initial user feedback has been positive. Musk described the concept as a mix between Airbnb and Uber, and predicted that by late 2026, Tesla will roll out fully driverless vehicles — including a steering-wheel-free version of the Cybercab.

ARK Invest estimates that Tesla’s robotaxi business could unlock a market opportunity worth up to $951 billion by 2029. Meanwhile, analysts at Cantor Fitzgerald believe Tesla is moving toward a high-margin “software-as-a-service” model, with significant growth potential once commercial operations scale up.

Dan Ives of Wedbush Securities, who recently test-drove the robotaxi, called the experience “very smooth” and noted that this launch marks a critical starting point for Tesla’s AI strategy. He also suggested that future iterations may integrate xAI’s Grok system, significantly enhancing in-car interaction and intelligence.

Tesla faces strong competition from companies like Waymo, which has already deployed autonomous taxis in several U.S. cities and plans further expansion. But Musk remains confident, stating that Tesla aims to have a million self-driving vehicles on the road by the second half of 2026.

Tesla’s stock had fallen 14.3% earlier this year, partly due to investor concerns over Musk’s involvement in the new U.S. Department of Government Efficiency. However, shares have since rebounded more than 24%, with markets closely watching the pace of Tesla’s autonomous driving rollout.