Tesla Inc. experienced its most significant single-day stock increase in two months on Monday, June 23, 2025, with shares surging nearly 10% following the much-anticipated launch of its robotaxi service in Austin, Texas. This debut saw approximately 10 Tesla Model Y SUVs operating within a defined geofenced area of South Austin, offering rides at a flat rate of $4.20. The news propelled CEO Elon Musk's net worth by an estimated $12 billion, reaching around $423 billion as of June 2025.
The Austin robotaxi service, which commenced on Sunday, June 22, 2025, runs daily from 6:00 a.m. to 12:00 a.m., though it may face limitations during adverse weather conditions. Despite being marketed as fully autonomous, a Tesla employee is present in the front passenger seat of each vehicle, serving as a "safety monitor." This contrasts with competitors like Waymo, which operates fully driverless vehicles in the same city.
Initial access to the service is highly controlled, with invitations extended predominantly to vetted customers, many of whom are prominent online supporters of Tesla. Riders use a dedicated robotaxi app to hail vehicles within the designated operational zone. While many invited participants have shared positive feedback, describing "smooth" rides, at least one incident was documented where a robotaxi briefly crossed a double yellow line and drove in the wrong lane before self-correcting. This underscores the ongoing technical hurdles as Tesla aims to scale its vision-only autonomous driving approach.
The surge in Tesla's stock price pushed the company's market capitalization to approximately $1 trillion. On June 23, 2025, the stock closed at $349.15, an 8.74% increase from the prior trading session, reaching an intraday high of $357.47. This rally comes amidst a challenging year for Tesla, with the stock still down around 12% year-to-date despite recent gains.
Tesla's financial performance in Q1 FY25 showed signs of strain, with total revenue decreasing by 9% year-over-year to $19.34 billion, and profit after tax declining by 70.58% to $0.41 billion. Despite these headwinds, analyst sentiment remains a mix of cautious optimism and "Buy" recommendations, though the average target price of $294.27 is below the current trading level. The success and scalability of the robotaxi service are now seen as critical factors for Tesla's future valuation and its ability to deliver on ambitious autonomy promises.
