Earlier this week, Tesla (TSLA) CEO Elon Musk announced that the company’s highly anticipated robotaxi service will launch on June 22 in Austin, Texas, pushing back the previously targeted June 12 date as the electric vehicle maker prioritizes safety protocols.

The tentative launch date comes as Tesla faces intense competition in the autonomous vehicle market, where Alphabet’s (GOOG) (GOOGL) Waymo already operates commercial robotaxi services, conducting 250,000 paid trips weekly across multiple U.S. cities. 

Tesla’s cautious approach indicates an acknowledgment of safety concerns surrounding autonomous driving technology. Musk emphasized the EV maker is being “super paranoid about safety,” noting that the launch date could shift if additional testing is needed.

Tesla Stock Gains Despite FSD Delay

The robotaxi service will begin with a limited rollout of 10 to 20 modified Model Y vehicles equipped with Tesla’s new “Full Self-Driving Unsupervised” technology. Unlike the futuristic CyberCab Tesla plans to produce next year, the initial fleet will consist of existing Model Ys, painted black, with distinctive white “Robotaxi” logos.

Tesla will implement geofencing to restrict the initial operating area of the robotaxis, with company employees remotely monitoring the fleet. This measured approach contrasts with Tesla’s broader ambitions to rapidly scale to thousands of vehicles if the Austin pilot proves successful.

The announcement provided a boost to Tesla shares, helping the stock recover from recent volatility following public disputes between Musk and President Donald Trump that briefly erased more than 14% of its market value.

Tesla’s entry into Austin’s competitive autonomous vehicle landscape positions it against established players, including Waymo, Amazon’s (AMZN) Zoox, and startup Avride. The Texas capital has emerged as a preferred testing ground for self-driving technology due to its robotaxi-friendly state regulations and tech-forward infrastructure.

Despite years of promises about autonomous driving capabilities, Tesla has yet to deliver a vehicle safe for unsupervised operation. Notably, the company’s camera-based approach differs from competitors like Waymo, which rely on sophisticated sensors, including lidar and radar technology.

Safety advocates and anti-Musk groups plan protests coinciding with Tesla's expected launch, citing concerns about the company’s driver assistance features currently marketed as Autopilot and Full Self-Driving.

Cathie Wood Is Bullish on Tesla’s Robotaxi

ARK Invest CEO Cathie Wood maintains her bullish stance on Tesla, projecting the electric vehicle maker’s stock could reach $2,600 per share by 2030, a potential 700% surge from current levels. Wood’s astronomical price target hinges almost entirely on Tesla’s autonomous vehicle ambitions rather than traditional car sales.

Speaking at HSBC’s Global Investment Summit in Hong Kong, Wood emphasized that 90% of Tesla’s projected valuation stems from its robotaxi platform, rather than its electric vehicle manufacturing. She highlighted the fundamental difference between one-time car sales and the recurring revenue potential of autonomous ride-hailing services.

Wood envisions Tesla owners generating income by adding their full self-driving vehicles to a fleet network when not in personal use, similar to Airbnb’s (ABNB) home-sharing model. Musk outlined this vision during Tesla’s fourth-quarter earnings call, describing plans for unsupervised autonomous vehicle operations in multiple cities by the end of the year.

The ARK Invest founder sees massive market potential in the global autonomous taxi opportunity, estimating it could reach $8 trillion to $10 trillion worldwide from virtually zero today. She attributes this rapid growth trajectory to the convergence of artificial intelligence across sectors, positioning Tesla as a robotics, energy storage, and AI company rather than a traditional automaker.

Wood’s track record remains mixed, with her ARK Innovation ETF (ARKK) ranked among the worst wealth destroyers over the past decade despite a strong 2020 performance. Tesla currently represents 10.8% of the ARKK ETF. 

Investors should also note that the $2,600 projection comes as Tesla faces intensifying competition from Chinese EV makers like BYD (BYD), which recently overtook Tesla in global electric vehicle sales. Wood acknowledged BYD’s role in accelerating cost reductions across the industry while maintaining confidence in Tesla’s autonomous driving differentiation.

Is TSLA Stock Undervalued?

Tesla stock has returned over 1,500% to shareholders in the past decade but trades almost 35% below its all-time high in June 2025. Out of the 41 analysts covering TSLA stock, 14 recommend “Strong Buy,” two recommend “Moderate Buy,” 15 recommend “Hold,” and 10 recommend “Strong Sell.” The average target price for TSLA stock is $292, 11% below the current trading price.