Tesla Inc (NASDAQ:TSLA) shares jumped more than 8% following the successful launch of its autonomous Robotaxi service in Austin, Texas over the weekend.
The launch involved a limited pilot program featuring about 10 to 20 Model Y vehicles operating within a geofenced area in South Austin.
The rides were offered by invitation only, primarily to Tesla investors, enthusiasts, and select social media influencers, who accessed the service via a new Robotaxi App.
The pilot ran daily from 6 AM to midnight, with a fixed fare of $4.20 per ride, regardless of distance or duration.
This marked the first time Tesla has offered rides without a human driver. However, a Tesla employee sat in the front passenger seat as a "safety monitor" with the ability to intervene if necessary.
The launch positions Tesla in competition with Alphabet-backed Waymo in the growing autonomous ride-hailing sector.
CEO Elon Musk views the business as crucial to the electric carmaker’s financial future, analysts at Wedbush highlighted.
“While Tesla's new foray into the driverless ride-hailing market is very much still in its infancy, we believe any incremental positive development coming out of the roll out of Robotaxi should be seen as potentially positive read throughs for the broader chip complex given both the increased semiconductor content needed for autonomous vehicles as well as Nvidia's apparent use of AI models to support its self driving efforts,” they wrote.
Shares of Tesla traded up 8.4% at about $349 on Monday.