Tesla shares slip as Austin robotaxi zone expands

Tesla shares slipped about 1.04% in early trading Thursday, underperforming the S&P 500, which fell 0.2%. Technology stocks were mixed, with Nvidia down about 0.5% and Intel off roughly 3.1%. The semiconductor sector weakened after Broadcom reported results that sent its shares down about 15.5%.

Investors focused on recent changes to Tesla’s robotaxi operations in Austin, Texas. Barclays analyst Dan Levy wrote that the company expanded the operating geofence on Wednesday to more than double its previous size and removed safety monitors from vehicles running inside the zone. The expanded area adds highway segments along Interstate 35 and suburban areas including Pflugerville and Manor. Independent tracking data referenced in the note showed Tesla’s unsupervised robotaxi fleet peaked at about 25 vehicles in late April.

Tesla’s active robotaxi fleet in Texas remains small compared with Alphabet-owned Waymo. Recent filings list 577 Waymo robotaxis registered in Texas versus 42 for Tesla statewide, and about 300 Waymo vehicles are estimated to operate in Austin. The two companies use different technical approaches: Tesla primarily relies on camera-based vision systems and software updates, while Waymo uses LiDAR sensors and high-definition maps that require area scanning and validation.

On Wall Street, analysts adjusted forecasts as they weigh near-term vehicle demand against spending on artificial intelligence and autonomy. Wolfe Research raised its 2026 EPS estimate for Tesla to $1.89 from $1.62 and lowered its 2027 estimate to $2.04 from $2.17; both projections remain below consensus estimates. TD Cowen maintained a Buy rating and a $490 price target, and highlighted potential U.S. demand for a long-wheelbase Model Y with three-row seating, estimating annual sales between 60,000 and 135,000 units if launched domestically at prices above $50,000.

Tesla’s robotaxi activity in Austin is part of the company’s broader effort to scale autonomous ride-hailing services. The company has expanded coverage through software updates, while competitors that rely on mapping and hardware typically expand into new areas after scanning and validating those zones.