Tesla Shares Climb as Austin Approves Robotaxi Testing, Musk-Trump Rift Eases

Tesla stock continued its upward trajectory on Tuesday, buoyed by growing momentum behind its robotaxi program and signs of a thaw in recent tensions between CEO Elon Musk and former President Donald Trump.

Tesla has officially been listed as an autonomous vehicle operator on the City of Austin’s Transportation and Public Works website, signaling a significant step forward for its planned robotaxi service. The company is reportedly targeting June 12 to begin operations, although that date has not been formally confirmed and could shift depending on operational readiness.

The addition of Tesla to Austin’s roster of autonomous vehicle operators — which already includes Alphabet's Waymo, Amazon’s Zoox, Hyundai’s Motional, and others — marks a notable development in the company's push to lead in the driverless mobility sector.

Early Tuesday trading saw Tesla shares rise about 2%, marking the third consecutive day of gains for the electric vehicle maker. Investors appear encouraged by the regulatory milestone and the anticipated launch of unsupervised robotaxi trials, which will start with an initial fleet of 10 to 20 vehicles. Expansion plans hinge on the outcome of early testing.

To enhance safety and ensure operational reliability, Tesla plans to deploy remote tele-operators to assist robotaxis in the event of an incident or traffic disruption. While this step reinforces Tesla's commitment to responsible autonomous driving, it may also limit how quickly the fleet can scale.

Meanwhile, a slight political détente between Musk and Trump may be helping to steady Tesla’s stock price. After recent friction that weighed on shares late last week, Trump made neutral-to-positive comments about Musk on Monday, indicating a potential willingness to engage in dialogue.

"I'd have no problem with it," Trump said at a White House event when asked if he’d be open to a conversation with Musk. He also mentioned he plans to keep the Tesla Model S he purchased in March — a nod to the earlier high-profile visit where Musk brought a fleet of Tesla vehicles to the White House for Trump to view.

When questioned about Musk's alleged drug use, Trump responded, “I don’t think so, I hope not,” offering a measured reply that signaled a cooling of their recent feud.

With regulatory progress in Austin and a more stable political backdrop, Tesla’s path toward launching its robotaxi service is gaining clarity — and investor confidence appears to be rising along with it.

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