Tesla shares rose more than 5% on Monday, putting the stock on pace for its highest close since July 22 and making it the top performer in both the S&P 500 and Nasdaq-100. The move comes days before Tesla's Thursday "Cybercab Launch Event" in Austin, Texas, where the company is expected to add its steering-wheel-free robotaxi to its existing rideshare service.
Tesla stock led gainers across the S&P 500 and Nasdaq-100 on Monday, climbing as investors positioned ahead of Thursday's robotaxi showcase.
Cybercab event drives the rally
The company has scheduled a "Cybercab Launch Event" in Austin on Thursday, where it is expected to say it will add the vehicle to the rideshare service it began operating in the city in June 2025 using Model Y SUVs.
Unlike the electric cars Tesla currently deploys for rideshare, the Cybercab, which debuted in October 2024, has no steering wheel or pedals. According to CEO Elon Musk, the vehicle is expected to eventually sell for less than $30,000 as production ramps up.
Executives have hyped the launch. After a Tesla influencer questioned whether Cybercabs were about to flood Austin, Musk told him they would. Tesla's head of artificial intelligence, Ashok Elluswamy, said the streets won't be the same anymore.
Stock notches its best day in weeks
Tesla shares rose more than 5% in recent trading, putting the stock on pace for its highest close since July 22, according to Dow Jones Market Data. The stock was also the best performer in both the S&P 500 and Nasdaq-100 on Monday.
But the setup carries risk. Barclays analyst Dan Levy wrote in a client note that he expects limited incrementals from Thursday's event, though according to Levy, Tesla's showcases "often generate hype/momentum given the 'meme' nature of the stock". That enthusiasm can reverse quickly — after Tesla's initial Cybercab event was light on details, the stock dropped about 9%.
Robotaxi rollout still expanding slowly
Levy also said Tesla's robotaxi progress continues to be slower than many had desired. Last year, Musk claimed Tesla would move so quickly that its robotaxis would be available to half of the U.S. population by the end of 2025.
The company currently offers autonomous rideshare service in six cities across Texas and Florida, plus supervised trips in the San Francisco Bay Area. Earlier this month, it won approval to deploy up to 5,000 autonomous vehicles in Nevada's Clark County, home to Las Vegas. It also plans to eventually launch operations in Phoenix.
In July, Musk told investors the company was going as fast as possible to scale the robotaxi operation without creating safety risks.
Source: MarketWatch
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