Tesla (TSLA) has been granted a rideshare license in Texas, a key step toward launching its robotaxi service in the state. The permit, issued to Tesla Robotaxi LLC, allows the EV giant to operate as a transportation network company, similar to Uber (UBER) and Lyft (LYFT). Following the news, TSLA stock was up about 2% on Friday.
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This move comes as a new Texas law, effective September 1, will require autonomous rideshare services to be regulated under the same framework as those with human drivers. The new rules also require self-driving cars in Texas to have cameras, insurance, and to follow traffic laws, adding more oversight for companies running them.
From Pilot to Expansion
This development follows Tesla’s recent pilot program in Austin. A small fleet of Model Y vehicles, monitored by safety operators, offered rides to a limited number of users in June. The pilot started small, but the company has rapidly expanded its service area, which has nearly doubled to cover about 80 square miles.
The new coverage area is now comparable to that of Alphabet (GOOGL)-backed Waymo, which also operates in the city. Looking ahead, Tesla is expected to focus on expanding its robotaxi business to other key states, including Nevada, Arizona, California, and Florida.
Is TSLA Stock a Buy?
Turning to Wall Street, TSLA stock has a Hold consensus rating based on 13 Buys, 15 Holds, and eight Sells assigned in the last three months. At $305.37, the average Tesla price target implies a 6.75% downside potential. The stock has declined 8.11% over the past six months.
