Investing.com -- Shares of Tesla (NASDAQ:TSLA) climbed to a session high of 3.5% today, driven by CEO Elon Musk’s announcement on CNBC about the company’s progress in autonomous vehicles and the upcoming launch of a self-driving ride-hailing service in Austin, Texas.
In the CNBC interview, Musk outlined Tesla’s ambitious plans to test thousands of autonomous cars in preparation for the service’s debut next month. Starting with approximately 10 cars, the company aims to rapidly scale up to a thousand vehicles within the first month. Musk further projected that by the end of next year, Tesla could have up to one million fully self-driving cars operational.
The anticipated service, likened to Waymo, will initially be limited to specific areas in Austin to ensure safety through geo-fencing. After the Texas launch, Tesla plans to expand to other major cities, including San Francisco and Los Angeles. According to Musk, the service will also offer a platform for Tesla owners to rent out their self-driving vehicles, drawing comparisons to businesses like Uber and Airbnb (NASDAQ:ABNB).
This news comes as Tesla continues to push the envelope in autonomous vehicle technology, aiming to have a significant presence on the roads within five years. Musk’s confidence in the robotaxi service’s potential was evident as he discussed the geo-fencing measures to ensure the cars operate only in safe zones.
While Tesla’s stock reacted positively to the news, shares of competitors in the ride-hailing space, Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT), experienced declines of 1% and 2%, respectively. This market response suggests investors may be weighing the potential impact of Tesla’s entry into the ride-hailing market with its fleet of autonomous vehicles.
Musk closed the interview by saying Tesla is seeing a major rebound in demand.