Why Is Tesla Stock Trading Higher On Tuesday?

Tesla, Inc. TSLA stock gained on Tuesday after Austin’s official Department of Motor Vehicles (DMV) website listed the company as an official operator of autonomous vehicles (AVs). The EV giant’s commercial robotaxi services are preparing to hit the road.

In May, Tesla announced plans to launch its Robotaxi service in Austin on June 12. CEO Elon Musk confirmed that the company is currently testing the Model Y.

Tesla initially planned to use vehicles from its lineup, like the Model Y, to operate the autonomous ride-sharing service before incorporating the Cybercab.

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Replying to a post about a Model Y robotaxi sighting in Austin on social media platform X, Musk said, “These are unmodified Tesla cars coming straight from the factory, meaning that every Tesla coming out of our factories is capable of unsupervised self-driving!”

Among its peers, Uber Technologies UBER offered Alphabet Inc GOOGL Waymo self-driving rides in Austin at no extra charge in March.

In just five months, from late 2024 to early 2025, Waymo doubled its total paid rides to reach the 10 million milestone. The company sees itself doubling that figure and reaching 20 million rides by 2025. Waymo’s weekly ride volume rose to over 250,000 trips across its core markets: Phoenix, San Francisco, Los Angeles, and Austin. 

Wedbush Securities’ Dan Ives reiterated his bullish views on Tesla despite the spat between U.S. President Donald Trump and Musk over the former’s Big Beautiful Bill, which subsequently led to Tesla losing over $153 billion in market capitalization. However, during an interview, Trump hinted at a possible reconciliation between the two.

Price Action: TSLA stock was up 3.40% at the last check Tuesday.

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