Tesla Inc. shares surged 3.56% as automaker tests driverless robotaxis in Austin without safety monitors.

Tesla Inc. shares surged 3.56% in pre-market trading on Dec. 16, 2025, as the automaker began testing fully driverless robotaxis in Austin without safety monitors, marking a pivotal step toward autonomous vehicle commercialization. The move has positioned Tesla as a front-runner in the race against rivals like Waymo and has drawn optimism from analysts and investors.

The test phase, involving Model Y vehicles operating without human oversight, underscores Tesla’s commitment to advancing its camera-based Full Self-Driving (FSD) technology. This development follows months of incremental testing and aligns with CEO Elon Musk’s vision of a large-scale robotaxi network. The absence of safety drivers also highlights Tesla’s confidence in its AI-driven systems, despite past incidents involving its test fleet, including several crashes since June 2025.

Analysts, including Wedbush’s Dan Ives, have emphasized Tesla’s potential to dominate the autonomous market, with Ives predicting a 70% global share over the next decade. The stock’s pre-market rally reflects investor enthusiasm for Tesla’s strategic pivot toward scalable autonomous services, which could redefine its revenue streams amid slowing EV sales. However, regulatory scrutiny and safety concerns remain critical hurdles as the company expands testing in Austin, with plans to double the fleet to 60 vehicles in the region.

As Tesla continues to push the boundaries of autonomous vehicle technology, the financial community remains closely watching both its technical progress and its stock performance. The company’s market capitalization has historically been sensitive to major developments in both its product and innovation timelines. While the pre-market gains suggest strong investor sentiment, the long-term impact of its robotaxi initiative remains to be seen, especially in light of ongoing challenges such as regulatory approvals and public perception of autonomous safety.