The confirmation of the robotaxi launch boosts Tesla's stock price

Promises of self-driving technology have supported the value of Tesla stock for years

It's possible that the robotaxi revolution has finally arrived.

Today, June 20, Tesla's stock opened 1 point 8 percent higher as the company's long-awaited robotaxi launch was finally confirmed.

Track every market on TradingView This Sunday, June 22, Austin, Texas, will witness the arrival of fully autonomous (FSD) Tesla vehicles. Elon Musk, the company's CEO, initially stated in 2015 that Tesla would introduce self-driving cars in two years. However, since then, the company's robotaxi launch schedule has experienced numerous setbacks and delays.

But now, according to Dan Ives, global head of technology research at Wedbush Securities, "the golden era of autonomous for Tesla officially kicks off on Sunday."

Early on the morning of June 20, a select group of Tesla Model Y drivers received special invitations allowing them to use their vehicles for the city's geo-fenced robotaxi launch.

Even as SandP 500 futures declined due to worries about President Trump's handling of the worsening Middle East crisis, this drove Tesla shares higher in pre-market trading. The robotaxi launch may be the first step toward restoring retail investors' faith in Tesla, which regularly ranks among the top stocks among them.

"We see this autonomous phase as one of the most significant for Musk and Tesla in its corporate history," Ives stated.

What are the plans for the Austin launch of the Tesla robotaxi?

The launch will currently be very limited. Musk has stated in the past that there will be 1020 vehicles involved and that the robotaxis will be restricted by geofencing to areas of Austin that are thought to be the safest.

However, that ought to be only the beginning.

It is our belief that Tesla will introduce and expand its robotaxi service to about 25 US cities within the next year, Ives stated. "This service should steadily ramp throughout the summer in Austin."

"It took time to build Rome. ., and neither will Tesla's strategic vision for robotics and autonomy," he continued.

In the event of an emergency, the cars in Austin's robotaxi launch this weekend will be linked to remote teleoperators that can steer the vehicle.

Despite these drawbacks, it represents a major turning point for Tesla as it aims to overtake Alphabets Waymo, which currently operates 1,500 self-driving taxis in four US cities, including Austin.

San Francisco, California, streets with a Waymo driverless car.

There are already thousands of self-driving taxis operating in four US cities, including Austin, Texas, and San Francisco, California, thanks to Waymo, Tesla's rival.

What is the significance of the robotaxi launch for Tesla stock?

Considering its historical performance, Tesla is by far the most costly of the Magnificent Seven stocks. With a price-to-earnings ratio of about 185, those who purchased Tesla shares today would not receive their money back in equity for almost two centuries if the company's profits never increased.

Although Tesla is currently primarily a carmaker, investors generally believe that the company will eventually have a much larger revenue stream from its robotaxi business, which is why Tesla stock is so expensive.

For Tesla, Ives stated, "We estimate the AI and autonomous opportunity is worth at least £1 trillion alone."

According to the theory, eventually, every Tesla on the road might be transformed into a robotaxi that can make money for its owners by transporting other passengers when they would otherwise be sitting still.

The chief futurist at ARK Invest, Brett Winton, stated, "If you could have someone drive you around for a dollar a mile, that's a great deal and everybody will take that."

Since Tesla would naturally receive a cut as well, the business could continue to profit from the hundreds of thousands of cars it has already sold.

Winton stated, "Tesla evolves from a hardware asset seller to a point-to-point transportation provider once robo taxis are on the market."

The market primarily bases Tesla's stock price on this speculative future business model.

For some time, investors have trusted Musk that the robotaxi launch will happen soon. The focus now is on the robotaxi launch's success rather than whether and when it will occur.

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