Tesla CEO Elon Musk has announced that robotaxi drives have begun in Austin without a safety monitor in the car. This move is a significant step for the electric-car maker, with investors placing big bets on the success of the Robotaxi business. The stock price jumped more than 4% following the announcement.

Since its launch last summer, Tesla’s Robotaxi service has been making progress. The company recently expanded its service area and fleet count in Austin, and also launched ride-hailing services in the Bay Area. Removing the safety rider from the cabin is a key milestone, signaling Tesla’s confidence in its autonomous technology.

However, Tesla’s core business is facing challenges, with a 9% decline in vehicle deliveries in 2025 compared to the previous year. The stock is trading at about 300 times earnings, reflecting investor optimism in Tesla’s autonomous future. While the news of testing Robotaxi vehicles without a safety driver strengthens the long-term bull case, caution is advised due to the current valuation and sales pressure.

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Read more at Nasdaq: Does This Good News From Tesla Make the Growth Stock a Buy?