Tesla shares closed Monday's session with a 2.2% gain, reaching $420.18. The stock traded between $407.29 and $421.25 during the day, mirroring a broader rally in U.S. technology stocks that saw the Nasdaq Composite rise over 1%.
Robotaxi Race Accelerates
The competitive landscape for autonomous ride-hailing services intensified as Alphabet's Waymo unit announced the launch of fully driverless operations in Nashville. This expansion, part of Waymo's partnership with Lyft, highlights the growing scale of the robotaxi sector. Waymo reported it now operates more than 2,500 vehicles across multiple markets and recently secured $16 billion in funding at a valuation of $126 billion.
Tesla's strategic focus remains firmly on autonomy. The company has reiterated its goal to begin production of its "Cybercab" robotaxi this year and recently disclosed a planned $2 billion investment into Elon Musk's artificial intelligence venture, xAI. Analysts note Tesla is entering a transition phase where future growth is increasingly tied to software and autonomous driving revenue streams.
Market Awaits Key Economic Signals
Investor attention is shifting toward upcoming economic reports. U.S. payrolls data scheduled for February 11 and consumer price index figures due on February 13 are viewed as critical indicators for the Federal Reserve's interest rate path. High-valuation stocks like Tesla are particularly sensitive to shifts in rate expectations.
While Tesla markets its "Full Self-Driving" (FSD) package, the company clarifies that the current FSD Beta remains an SAE Level 2 system, requiring an attentive human driver ready to take control. Significant regulatory, technological, and financial hurdles remain before the deployment of fully autonomous vehicles. Challenges include potential regulatory delays, high capital expenditure for manufacturing, and rising computing costs, which could pressure cash flow if vehicle demand softens.
After-hours traders are monitoring whether Monday's momentum can be sustained and are watching for updates on Tesla's robotaxi production timeline. The company's near-term stock performance is likely to be driven by sentiment around its autonomy efforts and broader market reactions to economic data.
