EV maker Tesla (TSLA) recently began the process of getting certified to launch a driverless ride-sharing service in Arizona, according to the state’s transportation department. In an email to Reuters, officials confirmed that Tesla reached out in late June and applied to operate both with and without a human driver. The company was specifically interested in running its autonomous service within the Phoenix metropolitan area, and a decision on the certification is expected by the end of July.
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This move comes shortly after Tesla began a small pilot program for its robotaxi service in Austin, Texas. The test included about a dozen vehicles and a limited group of passengers who were all under strict safety conditions, such as having a safety driver seated in the front. Although the launch attracted attention online, with several videos showing traffic issues, it was Tesla’s first real-world rollout of the service.
Despite the early hiccups, CEO Elon Musk announced on Wednesday that Tesla plans to expand the robotaxi program to cover more of Austin this weekend. If regulatory approvals go as planned, Musk also expects the service to launch in the San Francisco Bay Area within the next two months. The Arizona application is a signal of Tesla’s plans to expand its autonomous ride-sharing network, as it works to compete in the fast-growing autonomous vehicle market.
What Is the Prediction for Tesla Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 13 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $296.80 per share implies 4.2% downside risk.
