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(AppStoreOfficial.ID) — Tesla Inc. launched its highly anticipated autonomous ride-sharing service with a limited group of testers over the weekend. This initial rollout marks the beginning of what Elon Musk envisions as a groundbreaking addition to his company’s portfolio.
The inaugural rides of the robotaxis took place within a small area of Austin, where Tesla is based, with an employee seated in the front passenger seat of every car to ensure safety. Tesla carefully selected a select group of loyal shareholders and social media personalities to be among the first passengers and broadcast their journeys online.
In a single video, Herbert Ong, who manages a fan account, marveled above the velocity of the car and its capability to park without driver intervention. An additional social media user identified as @BLKMDL3 was influential in this regard. deemed made his journey smoother compared to having a human driver. Sawyer Merritt, a Tesla shareholder who manages an account dedicated to the company, called the experience “awesome.”
Without a kick-off event and minimal official pronouncements, Tesla primarily depended on word-of-mouth and media attention prior to the robotaxi release. This debut was unusually understated for a firm known for grand unveilings. “Cyber Rodeo” to commemorate its Texas factory launch in 2022 and an invite-only party last year near Hollywood to unveil autonomous vehicle prototypes.
Although Musk has warned that self-driving capabilities may not significantly impact Tesla’s finances for at least another year, advancements towards launching this feature have increased the company’s share prices. As of 9:33 a.m. on Monday in New York, the stock had climbed by 3.8%.
Musk has been steering the automaker toward untested technologies such as autonomous cars and human-like robots. Certain investors are relying on these new business areas to rejuvenate Tesla after experiencing a dip in vehicle sales. consumer backlash In opposition to its top executive, the firm’s stock price has dropped by 20% this year.
"Although Tesla seems to have strong prospects, we think the potential has already been factored into its share price," noted Joseph Spak, a UBS Group AG analyst who maintains a sell rating for the company. In a report released on Monday, he increased his price target to $215, which falls significantly below its closing value of $322.16 from the previous week.
Explainer: Why Tesla’s valuation hinges more on Musk than reality
The videos showcasing the debut of the robotaxis uploaded on Sunday were mostly uneventful, depicting Model Y SUVs traveling brief stretches, maneuvering through crossroads, steering clear of pedestrians, and parking—all without anyone occupying the driver's seat. However, there were minor issues as well; for instance, during a test where someone pressed a button expecting the car to stop at the roadside, it momentarily halted right in the middle of the street before continuing its movement once more.
Musk stated on Sunday that the initial riders had to pay a fixed fee of $4.20 for each journey. According to information shared by some early riders, robotaxis would operate from 6 a.m. to midnight every day inside a designated zone within the city limits, excluding the airport. The service might face restrictions or become inaccessible during adverse weather conditions.
Initially, Tesla is rolling out just 10 to 20 vehicles with this new feature, intending to demonstrate that their automobiles can handle actual road conditions without safety issues. This has been problematic for certain competitors, leading to increased oversight from regulators.
In late 2023, Cruise—the autonomous vehicle division of General Motors Co.—halted operations for its entire car fleet and saw its operational permit revoked in California due to an incident where a pedestrian was hurt. Following an event in which one of its sport utility vehicles hit and fatally injured a pedestrian in Arizona back in 2018, Uber Technologies Inc. stopped all tests involving self-driving cars. Within less than three years from then, the firm decided to offload its self-driving technology unit.
Although Tesla has not specified when the robotaxi service will be available to the broader public, Musk has committed to ramping up operations swiftly and extending the service to additional U.S. cities soon.
The automaker will not be alone in Austin as Waymo, which operates self-driving cars under Alphabet Inc., is expanding operations in the city via an agreement with Uber. Additionally, Amazon.com Inc.'s Zoox is conducting tests there as well.
Dan Ives, an analyst at Wedbush Securities who maintains a positive outlook on Tesla stock similar to a buy recommendation, anticipates that their autonomous vehicles will compete effectively against Waymo right from the beginning. Following a ride in one such vehicle over the weekend, as reported to appstoreofficial.ithis same analyst conveyed that the overall experience with Tesla’s self-driving taxis surpassed initial expectations.
(Updated with share movement in the fifth paragraph.)
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