Tesla Stock Drops. Robotaxis Set to Launch in 2 Days

Dow Jones06-20

Tesla stock dropped 1.1% in morning trading Friday on the last trading day before its expected robotaxi launch.

Coming into Friday's trading, Tesla stock had risen 35% since the April 22 first-quarter earnings conference call, when management reiterated its plan for a June launch of its robotaxi service.

Earlier this Month, CEO Elon Musk broke the news that June 22 was the target date for the launch of the service.

The launch will be small, with a limited number of cars, and human teleoperators ready to intervene if self-driving cabs run into problems. Investors should also expect the cabs -- unmodified recently produced Model Y vehicles -- to operate in limited areas.

Starting small won't surprise investors. Most -- barring an accident -- will be encouraged. Bullish investors expect robotaxis to unlock a new era of earnings growth for Tesla and validate the company's AI investments.

After the launch, investors will start to consider how Tesla's service can scale in Austin and across the country.

Coming into Friday trading, Tesla stock remained down about 25% so far this year and down about $22, or 6%, since Musk and President Donald Trump lashed out at each other on social media. Tesla stock was also up about 74% over the past 12 months.

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