Tesla stock pops as Robotaxi testing with no safety driver confirmed

Tesla (TSLA) stock rose on Monday following more positive developments in its Robotaxi business, with a prominent Wall Street bull claiming the “autonomous chapter” has begun for the EV maker.

On Sunday, an X.com user posted a video of a Tesla Robotaxi driving without a safety driver in Austin, Texas, where Tesla operates its Robotaxi service. Ashok Elluswamy, who heads Tesla AI initiatives like autonomous driving, responded, writing, “And so it begins!”

Tesla CEO Elon Musk later confirmed the video, posting on Sunday, “Testing is underway with no occupants in the ‌car.”

Tesla stock climbed 4% in early trade, nearing its all-time high of $488.54 reached almost one year ago.

The appearance of a Robotaxi testing in Austin without a safety driver echoes what Musk claimed earlier this month when he predicted Tesla was weeks away from unsupervised robotaxis.

Musk also claimed last month that the Tesla Robotaxi fleet would double in December, with the company poised to expand testing beyond Austin and the San Francisco Bay Area to Phoenix and Nevada.

The next step for Tesla will be the full removal of its safety driver from the Austin service.

Tesla bull Dan Ives of Wedbush believes the Robotaxi game plan is all coming together, with 2026 being the big year.

“Heading into 2026 this marks a monster year ahead for Tesla and Musk as the autonomous and robotics chapter begins,” he wrote in a note published Monday morning. “In our view we expect an accelerated Robotaxi launch across the US with importantly volume production of Cybercabs starting in the April/May timeframe.”

Tesla’s purpose-built Cybercab kicked off the company’s robotaxi hype train last October when Musk revealed a futuristic two-seater that lacked a steering wheel and pedals at a glitzy event from a Hollywood soundstage.

With Cybercab production seemingly on schedule, according to Ives, 2026 will likely be a “game changer” for the company, he said: “In a nutshell, we believe Tesla is taking major steps in advancing its AI Revolution path with autonomous and robotics front and center heading into 2026 that will be a ‘game changer and define Tesla’s future.’”

Other commentators who have tested Tesla’s latest version of FSD (full self-driving) said the service is much better than recent iterations, with smoother driving and far fewer driver interventions needed.

“This is door-to-door amazing. Couldn’t believe it,” car reviewer and commentator Jason Cammisa said on a podcast last week following an hourlong trip in San Francisco.

Barron’s writer Al Root also reviewed FSD, claiming the latest version was a “step up” and that other passengers preferred FSD driving the vehicle compared to himself.

“Today, I prefer to let FSD do most of the driving most of the time. It makes life a little easier and, when under supervision, adds a layer of safety that passengers have come to appreciate,” he said, though noting Alphabet’s (GOOG, GOOGL) Waymo service still offers better safety metrics at this time.

Putting it all together, the positive commentary and ramp-up of Tesla’s Robotaxi service has Wedbush’s Ives reiterating his Outperform rating and $600 price target, with a $2 trillion valuation on the horizon.

“The march to an AI driven valuation for TSLA over the next 6-9 months has now begun in our view with FSD and autonomous penetration of Tesla’s installed base and the acceleration of Cybercab in the US representing the golden goose for Musk & Co.,” he said.

Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You can follow him on X and on Instagram.

Click here for the latest technology news that will impact the stock market

Read the latest financial and business news from Yahoo Finance