Tesla’s venture into autonomous taxi services has largely remained theoretical, yet it has significantly impacted the company’s stock performance. The company launched its ride-hailing initiative in Austin, Texas, in June, utilizing vehicles equipped with its “full self-driving” (FSD) technology. At the launch, CEO Elon Musk declared an ambitious objective: to serve half the U.S. population by year’s end. However, by October, this goal was scaled back to encompass eight to ten metropolitan areas. By early 2026, robotaxis are operational in only two locations – Austin and the San Francisco Bay area – and require a company employee to be present during each trip. Tesla did not provide comment to CNN regarding its service.
Meanwhile, Tesla’s stock (TSLA) has surged over 50% since June, reaching an all-time high, fueled by Musk’s grand pronouncements. Musk had previously asserted that this service would dramatically reshape Tesla’s financial trajectory, positioning it as the world’s most valuable corporation. Yet, its primary revenue stream – electric vehicle (EV) sales – is faltering, experiencing a record 9% decline in 2025. This makes 2026 a pivotal year for Tesla. The company must begin to fulfill its ambitious robotaxi commitments, or it risks forfeiting recent gains.
“I anticipate a reckoning for Tesla within the next six months,” stated Ross Gerber, an early Tesla investor and the CEO of investment firm Gerber Kawasaki, who is now a vocal critic of Musk. Gerber believes that once analysts recognize the speculative nature of the robotaxi projections and the continued downturn in car sales, Tesla will face substantial challenges.
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