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Tesla Launches Robotaxi in Austin: Are Industry Dynamics Favorable?
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Key Takeaways
TSLA launched a small robotaxi fleet in Austin, marking its first paid rides with no human driver.
The trial involved about 10 vehicles monitored by front-seat passengers in a limited area.
Texas passed new laws requiring permits for driverless cars, effective September 2025.
Tesla (TSLA - Free Report) launched a small group of self-driving taxi service in Austin, TX, marking the first time its autonomous vehicles transported paying passengers without a human driver behind the wheel. CEO Elon Musk confirmed the robotaxi launch, while social media influencers shared videos of their inaugural rides. The pilot is considered a key step toward Musk's broader vision of autonomous mobility as a major revenue driver for the company.
A small fleet of around 10 Tesla vehicles was seen operating in the South Congress area without a driver, but a passenger in the front seat acting as a safety monitor. However, the extent of their control over the vehicles remains unclear. Tesla had invited a select group of influencers to participate in the trial, which was tightly controlled and restricted to a specific area. Per Musk’s post on X, rides were priced at a flat rate of $4.20.
As the launch approached, Texas lawmakers passed new legislation regulating autonomous vehicles. Governor Greg Abbott signed a bill requiring companies to obtain state permits to operate driverless cars. The law, set to take effect on Sept. 1, 2025, indicates that state leaders from both political parties are urging the driverless-vehicle industry to proceed with caution.
Tesla’s high-profile launch comes as other players in the space are also racing to expand robotaxi services. However, with rising regulatory scrutiny and safety concerns — highlighted by Texas’ new permit law — industry momentum remains uncertain. TSLA carries a Zacks Rank #3 (Hold) at present.
Zoox, Amazon’s (AMZN - Free Report) autonomous vehicle subsidiary, has opened its first dedicated robotaxi manufacturing facility in California, marking a key step toward launching its commercial self-driving taxi service in the United States. Amazon Zoox is actively testing a fleet of more than 20 driverless vehicles in various American cities. In San Francisco, operations are currently focused on the South of Market district. Amazon Zoox plans to soon offer test rides to the public.
Alphabet’s (GOOGL - Free Report) self-driving division, Waymo, announced that it will restart autonomous vehicle testing in New York City next month as part of a broader strategy to expand its operations nationwide. The Alphabet subsidiary views New York’s dense and dynamic urban landscape as an essential proving ground for its technology. Waymo remains the only U.S. firm offering a commercial robotaxi service to paying passengers. With a fleet exceeding 1,500 vehicles, Alphabet Waymo facilitates more than 250,000 rides each week in major cities, such as San Francisco, Los Angeles, Phoenix and Austin.
Tesla’s Price Performance, Valuation and Estimates
Tesla has underperformed the Zacks Automotive – Domestic industry and the Auto, Tires and Truck sector year to date. Shares of Tesla have lost 20.2% compared with the industry’s decline of 19.6%.
YTD Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, Tesla appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 9.88, higher than its industry’s 2.60.
Image Source: Zacks Investment Research
EPS Estimates Revision
The Zacks Consensus Estimate for 2025 EPS has moved down by a penny in the past 30 days. The Zacks Consensus Estimate for 2026 EPS has moved up by a penny in the past seven days.
Image Source: Zacks Investment Research
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Tesla Launches Robotaxi in Austin: Are Industry Dynamics Favorable?
Key Takeaways
Tesla (TSLA - Free Report) launched a small group of self-driving taxi service in Austin, TX, marking the first time its autonomous vehicles transported paying passengers without a human driver behind the wheel. CEO Elon Musk confirmed the robotaxi launch, while social media influencers shared videos of their inaugural rides. The pilot is considered a key step toward Musk's broader vision of autonomous mobility as a major revenue driver for the company.
A small fleet of around 10 Tesla vehicles was seen operating in the South Congress area without a driver, but a passenger in the front seat acting as a safety monitor. However, the extent of their control over the vehicles remains unclear. Tesla had invited a select group of influencers to participate in the trial, which was tightly controlled and restricted to a specific area. Per Musk’s post on X, rides were priced at a flat rate of $4.20.
As the launch approached, Texas lawmakers passed new legislation regulating autonomous vehicles. Governor Greg Abbott signed a bill requiring companies to obtain state permits to operate driverless cars. The law, set to take effect on Sept. 1, 2025, indicates that state leaders from both political parties are urging the driverless-vehicle industry to proceed with caution.
Tesla’s high-profile launch comes as other players in the space are also racing to expand robotaxi services. However, with rising regulatory scrutiny and safety concerns — highlighted by Texas’ new permit law — industry momentum remains uncertain. TSLA carries a Zacks Rank #3 (Hold) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Challengers in the Commercial Robotaxi Arena
Zoox, Amazon’s (AMZN - Free Report) autonomous vehicle subsidiary, has opened its first dedicated robotaxi manufacturing facility in California, marking a key step toward launching its commercial self-driving taxi service in the United States. Amazon Zoox is actively testing a fleet of more than 20 driverless vehicles in various American cities. In San Francisco, operations are currently focused on the South of Market district. Amazon Zoox plans to soon offer test rides to the public.
Alphabet’s (GOOGL - Free Report) self-driving division, Waymo, announced that it will restart autonomous vehicle testing in New York City next month as part of a broader strategy to expand its operations nationwide. The Alphabet subsidiary views New York’s dense and dynamic urban landscape as an essential proving ground for its technology. Waymo remains the only U.S. firm offering a commercial robotaxi service to paying passengers. With a fleet exceeding 1,500 vehicles, Alphabet Waymo facilitates more than 250,000 rides each week in major cities, such as San Francisco, Los Angeles, Phoenix and Austin.
Tesla’s Price Performance, Valuation and Estimates
Tesla has underperformed the Zacks Automotive – Domestic industry and the Auto, Tires and Truck sector year to date. Shares of Tesla have lost 20.2% compared with the industry’s decline of 19.6%.
YTD Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, Tesla appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 9.88, higher than its industry’s 2.60.
Image Source: Zacks Investment Research
EPS Estimates Revision
The Zacks Consensus Estimate for 2025 EPS has moved down by a penny in the past 30 days. The Zacks Consensus Estimate for 2026 EPS has moved up by a penny in the past seven days.
Image Source: Zacks Investment Research