Image Source: Pexels

Key Takeaways

• Tesla stock closed the week at $322.16, as it inched up 0.03% ahead of its robotaxi service launch in Austin.
• Elon Musk confirmed 10-20 robotaxis will operate initially, restricted to specific neighborhoods with limited public access.
• Wedbush predicts Tesla’s market cap could reach $2 trillion if the robotaxi service succeeds.
• Texas lawmakers and federal regulators raised safety and policy concerns before the launch.
• Tesla signed a deal for its first grid-scale battery plant in China, expanding its energy footprint.

Tesla Inc. (TSLA) stock edged higher to close the week at $322.16 on June 20, 2025, as the electric vehicle giant prepared to launch its highly anticipated robotaxi service in Austin, Texas. After hours, shares nudged up further to $322.71. Investors are closely watching this rollout, which Elon Musk has billed as a potential game-changer for Tesla’s future valuation.

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Image Source: Yahoo! Finance

Austin Robotaxi Rollout Begins with Caution

Austin will become the first city worldwide to see Tesla’s self-driving Model Y SUVs offering rides within a geo-fenced area. The service will start small, with fewer than 20 robotaxis operating in select neighborhoods and likely limited to Tesla employees and invited users at first. A safety monitor will ride in the passenger seat while the driver’s seat remains empty.

🚨 BREAKING: Tesla’s robotaxi service is set to debut in Austin on June 22, with just 10 vehicles to start. Elon Musk confirmed the rollout, with the first driverless trip expected on his birthday, June 28.

Rides will be invite-only, limited to Model Y, with safety monitors… pic.twitter.com/T2Q77Q7kiW

— Tesla Owners Silicon Valley (@teslaownersSV) June 21, 2025

Elon Musk has emphasized that the launch will be slow and cautious, possibly delaying the full self-driving feature until the end of June to ensure safety. Tesla fans have expressed excitement online, while Musk insists that safety remains a top priority in this first-of-its-kind deployment.

Regulatory Scrutiny and Market Risks Loom

Despite the excitement, federal and state regulators have expressed concerns. The National Highway Traffic Safety Administration (NHTSA) is reviewing Tesla’s safety plans, questioning how the company will handle emergencies, crashes, and adverse weather. A group of Texas lawmakers urged Tesla to postpone the rollout until new autonomous vehicle laws take effect in September.

Tesla’s history with its Full Self-Driving technology, linked to at least 17 deaths and several serious injuries, continues to draw regulatory attention. This rollout contrasts sharply with rivals like Waymo and Amazon’s Zoox, which spent years mapping streets and testing in diverse conditions.

Wedbush Bullish on Tesla’s Valuation Potential

Analysts at Wedbush remain bullish, predicting Tesla’s market cap could double to $2 trillion within 18 months if the robotaxi rollout succeeds. The firm maintained its “outperform” rating and $500 price target, highlighting the long-term value of Tesla’s autonomous strategy and Cybercab development plans.

Tesla $TSLA could reach a $2 Trillion market cap (a double from current levels) by the end of next year, says Wedbush Analyst Dan Ives 🚨🚨 pic.twitter.com/zmg4wNtmtI

— Barchart (@Barchart) June 21, 2025

However, some analysts remain skeptical. Seaport Research downgraded Tesla in April, citing the complexity of deploying large autonomous fleets and potential slowdowns in AI spending after 2026. Musk’s recent public disputes, including a spat with former President Donald Trump, have also drawn investor attention.

China Expansion and Energy Projects Boost Growth Outlook

Beyond robotaxis, Tesla announced an agreement to build its first grid-scale battery power plant in China, signaling expansion in its energy division. The company continues to diversify, balancing automotive growth with renewable energy solutions.

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