Tesla Stock Rallies as Robotaxi Testing Goes Fully Driverless

• Tesla (TSLA) advanced its autonomous driving efforts with unsupervised Robotaxi testing in Austin, including vehicles operating with no occupants, confirmed by CEO Elon Musk.
• Recent Full Self-Driving (FSD) improvements received positive feedback from reviewers, highlighting smoother performance and reduced interventions, though competitors like Alphabet’s (GOOGL) Waymo maintain stronger safety metrics in some areas.
• Wedbush analyst Dan Ives reiterated an ‘Outperform’ rating with a $600 price target, projecting 2026 as a pivotal year for Cybercab production and Robotaxi expansion, potentially driving a $2 trillion valuation.

Tesla’s (TSLA) push into autonomous mobility gained significant momentum with recent testing milestones in its Robotaxi program. A video shared on X showed a Tesla vehicle operating as a Robotaxi in Austin, Texas, without any occupants or safety driver, marking a key advancement in unsupervised operation.

Just saw a Tesla with no one in the car @SawyerMerritt @wholemars @robotaxi @Tesla pic.twitter.com/llSt6UPbH4

— 420 Bounty Hunter (@Mandablorian) December 14, 2025

Ashok Elluswamy, Tesla’s director of AI and autonomy, commented on the post, stating, “And so it begins!” Tesla CEO Elon Musk subsequently confirmed the development, noting that testing was underway with no occupants in the car.

This progress aligns with broader improvements in Tesla’s Full Self-Driving (FSD) technology. Independent reviewers have highlighted substantial enhancements in recent iterations, with smoother performance and reduced need for human interventions. Automotive commentator Jason Cammisa described a door-to-door trip in San Francisco as exceptional, stating, “This is door-to-door amazing. Couldn’t believe it.” Barron’s contributor Al Root similarly noted the latest FSD version represented a clear improvement, adding that passengers often preferred the system’s handling over manual driving, though he acknowledged that competitors like Alphabet’s (GOOGL, GOOGL) Waymo currently demonstrate superior safety metrics in some areas.

The positive developments contributed to a strong market response for Tesla (TSLA), with shares rising 3.70% to $475.94 on Monday. The stock reached an intraday high of $481.77, approaching its all-time high of $488.54 set nearly one year prior.

Looking ahead, the company’s purpose-built Cybercab vehicle, unveiled last October as a steering-wheel-free two-seater designed exclusively for autonomous operation, remains central to its strategy. Analyst Dan Ives of Wedbush Securities views the convergence of these elements as pivotal, projecting 2026 as a transformative period. In a client note, Ives forecasted accelerated Robotaxi deployment across the U.S., with volume production of Cybercabs potentially commencing in the April/May timeframe. He maintained an ‘Outperform’ rating on Tesla with a $600 price target, emphasizing the potential for FSD penetration and Cybercab scaling to drive substantial value, including a path toward a $2 trillion valuation.

These steps reflect Tesla’s ongoing commitment to advancing autonomous driving capabilities, building on real-world testing and software refinements to position the company at the forefront of AI-driven transportation.

WallStreetPit does not provide investment advice. All rights reserved.

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