Tesla Stock Rises as Robotaxi Service Expands to Miami

This article first appeared on GuruFocus.

Tesla (NASDAQ:TSLA) shares climbed about 3% on Thursday after the electric-vehicle maker expanded its Robotaxi service to Miami, broadening its autonomous ride-hailing rollout beyond Texas.

Tesla’s Robotaxi service initially operates in selected areas across western and central Miami using Model Y vehicles equipped with the company’s Full Self-Driving software. The move marks the next step in Tesla’s strategy to grow its autonomous transportation business as competition in the sector intensifies.

The Miami expansion follows last month’s Robotaxi launch in Austin and places Tesla in more direct competition with Alphabet’s Waymo, which has been expanding its own driverless ride-hailing operations across several U.S. cities.

Tesla has increasingly positioned autonomous driving as a key long-term growth opportunity alongside its electric-vehicle business. The latest rollout comes after the company reported record second-quarter deliveries of 480,126 vehicles, highlighting continued momentum in its core automotive operations while investing in self-driving technology.