Tesla Starts Long-Awaited Robotaxi Service With Low-Key Rollout
(Bloomberg) -- Tesla Inc. rolled out its long-promised driverless taxi service to a handful of riders Sunday, a modest debut for what Elon Musk sees as a transformative new business line.
Bezos Wedding Draws Protests, Soul-Searching Over Tourism in Venice
One Architect's Quest to Save Mumbai's Heritage From Disappearing
NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports
The first robotaxi trips were limited to a narrow portion of Tesla's hometown of Austin, with an employee in each vehicle keeping tabs on the operations. The carmaker hand-picked a friendly crop of initial riders, which featured investors and social-media influencers who live-streamed their trips.
In one video, Herbert Ong, who runs a fan account, marveled over the speed of the vehicle and the ability to park autonomously. Another influencer with the @BLKMDL3 handle on X said the trip was 'smoother than a human driver.' Sawyer Merritt, a Tesla investor who runs an account focused on the company, called the experience 'awesome.'
With no kickoff event and little in the way of formal announcements, Tesla has relied largely on word of mouth and media coverage ahead of the robotaxi launch, which comes about a decade after Musk began talking about the possibility. The unveiling was uncharacteristically low-key for a company that held a 'Cyber Rodeo' to mark a Texas factory opening in 2022 and an invite-only party near Hollywood last year to unveil autonomous products.
Musk is reorienting the carmaker around hyped-but-still-unproven technologies including self-driving vehicles and humanoid robots. Some investors are counting on new markets to revive Tesla following a sales slump and consumer backlash against the chief executive officer. Its shares have tumbled 20% this year.
'Robotaxis are critical to the Tesla investment case,' Tom Narayan, an analyst with RBC Capital Markets, said in a note. About 60% of Narayan's valuation for the shares is attributable to the self-driving vehicles.
The videos of the robotaxi launch posted Sunday were largely mundane, showing Model Y SUVs driving short distances, navigating intersections, avoiding pedestrians and parking — albeit with no one sitting in the driver's seat. There were some hiccups, like when one streamer tested a button to have the vehicle pull over and it instead briefly stopped in the middle of a road before the vehicle began moving again.
The first riders are being charged a flat rate of $4.20 per trip, Musk said Sunday, though it's unclear what pricing will look like longer term. Robotaxis will be available between 6 a.m. and midnight daily within a geofenced area of the city, not including the airport, according to terms of use that some early riders posted. Service may be limited or unavailable in foul weather.
The launch marks a crucial test for Tesla, which is using only 10 to 20 vehicles at first. It's aiming to show it can safely and successfully navigate real-world traffic, which has tripped up some other companies and brought regulatory scrutiny.
Cruise, the now-defunct autonomy business of General Motors Co., grounded its fleet in late 2023 and had its operating license suspended in California following an accident that injured a pedestrian. Uber Technologies Inc. ceased testing self-driving vehicles after one of its SUVs struck and killed a pedestrian in Arizona in 2018. Less than three years later, the company agreed to sell its self-driving business.
While Tesla hasn't said when the robotaxi service will open to the general public, Musk has pledged to scale up quickly and expand to other US cities in the near future.
The company faces a crowded market in Austin. Waymo, which is owned by Google parent Alphabet Inc., is scaling up in the city through a partnership with Uber. Amazon.com Inc.'s Zoox is also testing there.
Dan Ives, an analyst with Wedbush Securities who rates Tesla outperform, said he expects robotaxis to be competitive with Waymo from the start. After a member of his team rode in one Sunday, the analyst told Bloomberg the robotaxi user experience was 'better than expected.'
Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags
Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028?
Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros
The US Has More Copper Than China But No Way to Refine All of It
Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump?
©2025 Bloomberg L.P.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
22 minutes ago
- Yahoo
Chevron Boosts Dividend Potential with Strategic Lithium Acquisition
Chevron Corporation (NYSE:CVX) is one of the 10 best dividend stocks according to Jim Cramer. On June 17, 2025, the company announced the closing of a transaction to acquire all equity interests in two subsidiaries of TerraVolta Resources and its investor, The Energy & Minerals Group. A tanker truck making its way through a refinery facility. . The American multinational energy corporation, Chevron Corporation (NYSE:CVX) engages in the exploration and extraction of crude oil and natural gas. Headquartered in Texas, the company focuses on multiple aspects of the oil and gas industry, from production and refining to marketing and transportation. Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE:CVX) has completed the acquisition of 125,000 net acres in Northeast Texas and Southwest Arkansas from TerraVolta Resources and East Texas Natural Resources on June 17, 2025. With this acquisition, the company enters the domestic lithium sector, targeting the Smackover Formation known for its high lithium content. The company plans to use direct lithium extraction (DLE), an advanced method with a smaller environmental footprint, to establish a lithium business with commercial value. Through the investment, Chevron Corporation (NYSE:CVX) could potentially support the growing demand for critical minerals essential for electrification. With a payout ratio of 75.43%, indicating the company's capabilities to handle the dividend payments, Chevron Corporation (NYSE:CVX) offers a dividend yield of 4.69%. The increase in dividends for 38 consecutive years further makes the stocks appealing to investors looking for less risky, long-term, stable income. While we acknowledge the potential of CVX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: andDisclosure. None.
Yahoo
22 minutes ago
- Yahoo
Realty Income Strengthens Dividend Stability with Major Notes Offering Plan
Realty Income Corporation (NYSE:O) is one of the 10 best dividend stocks according to Jim Cramer. Stifel Nicolaus reiterated a Buy rating on the company, following an announcement on Notes offering valued at €1.3 billion. A REIT Retail company representative discussing the portfolio growth with a tenant. Realty Income Corporation (NYSE:O), based in California, is a real estate investment trust (REIT) that acquires and manages freestanding, single-tenant commercial properties. The company focuses on properties leased to retail clients under long-term net lease agreements. Known for paying monthly dividends, the company aims to offer a steadily growing monthly income stream. On June 11, 2025, the company announced an agreement to issue €1.3 billion in notes. As per the agreement, Realty Income Corporation (NYSE:O) will offer €650 million of 3.375% senior unsecured notes due June 20, 203, and €650 million of 3.875% senior unsecured notes due June 20, 2035. The company intends to use the net proceeds from these Notes offerings for general corporate purposes, including the repayment or repurchase of the company's debts. Following the announcement, Stifel Nicolaus reiterated a Buy rating on the stock, pointing out that the Notes will reduce the dilution from the repayment. The dividend yield of 5.57%, supported by a consecutive growth of 25 years, makes the stock attractive to investors seeking consistent income. Currently, the company's payout ratio stands at 283.37%. While we acknowledge the potential of O as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: andDisclosure. None. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
22 minutes ago
- Yahoo
Vail Resorts Maintains Dividend Appeal Despite Earnings and Guidance Revisions
Vail Resorts, Inc. (NYSE:MTN) is one of the 10 best dividend stocks according to Jim Cramer. The company received a Hold rating from Morgan Stanley, with a price target of $146. An aerial view of a mountain resort, its snow-capped peaks and lush ski slopes revealed in all their glory. Headquartered in Colorado, Vail Resorts, Inc. (NYSE:MTN) is a mountain resort company that owns and operates a network of resorts, hotels, and real estate properties across the globe. The company provides experience related to skiing, snowboarding, and other mountain-based activities. Additionally, it also offers lodging and retail services to its customers. Vail Resorts, Inc. (NYSE:MTN) held its Q3 earnings call earlier this month. The company reported a 3% growth in resort-reported EBITDA year-to-date and a 4% increase in season pass revenue. However, the lower-than-expected lift ticket visitation, in addition to one-time costs related to Rob Katz's succession to Kirsten Lynch as the company's CEO, has caused the company to adjust its fiscal 2025 guidance. Following the earnings call, Morgan Stanley has given a Hold rating for the stock, with a price target of $146. The company's share price when closing on Tuesday was $155.76. With a dividend yield of 5.71%, Vail Resorts, Inc. (NYSE:MTN) gains a position on our list. Though the payout ratio of 113.12% highlights riskiness, 4 years of consecutive dividend growth keep the stock appealing to income-seeking investors. While we acknowledge the potential of MTN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: andDisclosure. None.
