Shares in Tesla saw a two per cent rise in after-hours trading on Wednesday, following reports that the electric vehicle (EV) behemoth is gearing up to launch its much-anticipated robotaxi service as early as 12th June.
This uptick helped offset earlier losses triggered by disappointing new vehicle registration figures across Europe, as reported by .
Investor sentiment took a positive turn following CEO Elon Musk's announcement on his own platform, X, that Tesla has been discreetly testing self-driving Model Y vehicles on public roads in Austin with no one at the driver's seat – an achievement reached "a month ahead of schedule", he stated.
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"For the past several days, Tesla has been testing self-driving Model Y cars (no one in the driver's seat) on Austin public streets with no incidents", the post read. "Next month, first self-delivery from factory to customer".
Tesla is reportedly readying an initial fleet of 10 to 20 autonomous Model Y vehicles, with plans for rapid expansion.
Derren Nahan, head of equity research at Hargreaves Lansdown, commented: "The stock's after hours rally was driven by renewed optimism that Tesla is finally close to delivering on its full self-driving promise – a key pillar of the company's valuation.
"The robotaxi milestone has investors hoping this could reignite sales momentum and reestablish Tesla as a leader in the EV space".
Tesla's robotaxi development
Austin has emerged as a testing hub for autonomous taxis, with Tesla now joining Alphabet's Waymo in conducting live trials on public roads.
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However, regulatory challenges persist, given that Tesla is not presently licensed as a rideshare provider in Texas.
Nevertheless, the state's lenient approach to self-driving vehicles has facilitated swift testing phases.
Despite witnessing a 12 per cent decline so far this year, Tesla's shares have more than doubled over the past 12 months.
Should the robotaxi launch adhere to its timeline, investors might finally see the returns Musk has been promising for some time.