Tesla’s Stock Price Rises After Launching Limited Robotaxi Service in Austin, Texas
Tesla’s stock price soared to its highest level in nearly a year following an announcement by CEO Elon Musk about testing driverless vehicles in Tesla’s robotaxis.
Key Developments:
- Tesla initiated a limited robotaxi service in Austin, Texas, in June using modified Model Y vehicles equipped with full self-driving capabilities.
- Elon Musk confirmed on his social media platform that Tesla is testing driverless vehicles in its robotaxis.
- Tesla’s stock price increased by 3.54% to close at $475.19 on Monday, marking a 17.67% rise this year.
- The stock reached an intraday high of $481.77, its highest level in almost a year.
- Tesla’s market capitalization grew by $54.377 billion, reaching approximately $1.581 trillion, according to Economatica data.
Context and Impact:
Elon Musk, the CEO of Tesla and SpaceX, has become a prominent figure in the electric vehicle and space exploration industries. His companies have revolutionized transportation with Tesla’s electric cars and ambitious space travel plans through SpaceX. Musk’s recent success has significantly impacted both industries and his personal wealth.
Tesla’s stock price surge is largely attributed to investor optimism surrounding its autonomous driving technology and the company’s vision for humanoid robots. Although most of Tesla’s revenue still comes from selling electric vehicles, the potential of autonomous driving technology has attracted substantial investor interest.
The limited robotaxi service launched in Austin, Texas, uses modified Model Y vehicles with full self-driving capabilities. Initially, these tests included geolocation and a human safety monitor in the passenger seat. The news that Tesla is now testing driverless robotaxis without human monitors aligns with expectations of progress in their trials, according to management statements during the third-quarter earnings call.
Elon Musk’s Soaring Wealth:
On Monday, Elon Musk’s net worth surpassed $600 billion for the first time, according to Forbes data, following reports that his SpaceX startup is likely to go public with an estimated valuation of $800 billion.
- Musk owns approximately 42% of SpaceX, and his wealth could increase by $168 billion solely from the initial public offering, potentially raising his net worth to $677 billion, according to Forbes calculations.
- His closest rivals are Larry Page of Google with $253.3 billion, Larry Ellison of Oracle with $235.3 billion, and Jeff Bezos of Amazon with $235.1 billion, according to the Forbes Billionaires list.
- Musk became the first person to surpass $500 billion in net worth in October. No other individual has reached half a trillion dollars in wealth.
- Larry Ellison of Oracle is the only other person to have reached the $300 billion and $400 billion marks.
- Just five years ago, in March 2020, Musk’s fortune stood at $24.6 billion, reflecting a staggering 2,656% increase in his wealth since then.
Expanding Elon Musk’s Empire:
Musk’s artificial intelligence company, xAI, is reportedly in advanced talks to secure $15 billion in new capital with a valuation of $230 billion, further expanding his growing empire.
