Tesla Launches Robotaxi in Austin: Are Industry Dynamics Favorable?

Tesla TSLA launched a small group of self-driving taxi service in Austin, TX, marking the first time its autonomous vehicles transported paying passengers without a human driver behind the wheel. CEO Elon Musk confirmed the robotaxi launch, while social media influencers shared videos of their inaugural rides. The pilot is considered a key step toward Musk's broader vision of autonomous mobility as a major revenue driver for the company.A small fleet of around 10 Tesla vehicles was seen operating in the South Congress area without a driver, but a passenger in the front seat acting as a safety monitor. However, the extent of their control over the vehicles remains unclear. Tesla had invited a select group of influencers to participate in the trial, which was tightly controlled and restricted to a specific area. Per Musk’s post on X, rides were priced at a flat rate of $4.20.As the launch approached, Texas lawmakers passed new legislation regulating autonomous vehicles. Governor Greg Abbott signed a bill requiring companies to obtain state permits to operate driverless cars. The law, set to take effect on Sept. 1, 2025, indicates that state leaders from both political parties are urging the driverless-vehicle industry to proceed with caution.Tesla’s high-profile launch comes as other players in the space are also racing to expand robotaxi services. However, with rising regulatory scrutiny and safety concerns — highlighted by Texas’ new permit law — industry momentum remains uncertain. TSLA carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Challengers in the Commercial Robotaxi ArenaZoox, Amazon’s AMZN autonomous vehicle subsidiary, has opened its first dedicated robotaxi manufacturing facility in California, marking a key step toward launching its commercial self-driving taxi service in the United States. Amazon Zoox is actively testing a fleet of more than 20 driverless vehicles in various American cities. In San Francisco, operations are currently focused on the South of Market district. Amazon Zoox plans to soon offer test rides to the public.Alphabet’s GOOGL self-driving division, Waymo, announced that it will restart autonomous vehicle testing in New York City next month as part of a broader strategy to expand its operations nationwide. The Alphabet subsidiary views New York’s dense and dynamic urban landscape as an essential proving ground for its technology. Waymo remains the only U.S. firm offering a commercial robotaxi service to paying passengers. With a fleet exceeding 1,500 vehicles, Alphabet Waymo facilitates more than 250,000 rides each week in major cities, such as San Francisco, Los Angeles, Phoenix and Austin.Tesla’s Price Performance, Valuation and EstimatesTesla has underperformed the Zacks Automotive – Domestic industry and the Auto, Tires and Truck sector year to date. Shares of Tesla have lost 20.2% compared with the industry’s decline of 19.6%.YTD Price PerformanceImage Source: Zacks Investment ResearchFrom a valuation perspective, Tesla appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 9.88, higher than its industry’s 2.60.Image Source: Zacks Investment ResearchEPS Estimates RevisionThe Zacks Consensus Estimate for 2025 EPS has moved down by a penny in the past 30 days. The Zacks Consensus Estimate for 2026 EPS has moved up by a penny in the past seven days.Image Source: Zacks Investment ResearchZacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks