Tesla expands robotaxi ambitions as Elon Musk predicts AI-led driving future

AI Sentiment: 68/100 Bullish
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Buy TSLA. Musk’s push to expand monitor-free self-driving across the US this year supports a step-change in robotaxi revenue potential and strengthens the narrative that Tesla is moving from “car sales” to “AI mobility platform.” The market is already pricing autonomy progress; this adds timing and scale (Texas rollout + nationwide expansion).
Key Risk: Regulators or safety incidents force a halt or require human monitors, delaying nationwide expansion and crushing the robotaxi revenue timeline.
Buy NVIDIA (NVDA). If Tesla and peers scale robotaxis, demand for compute (training/inference) and in-vehicle AI accelerators rises. Robotaxi growth is a direct second-order demand driver for the chips powering perception and driving stacks, not just for one OEM.
Key Risk: Autonomy deployments stall or switch to cheaper/alternative hardware, reducing incremental GPU/AI accelerator demand.
- Tesla plans broader US rollout of driverless vehicles later this year.
- Elon Musk predicts AI-driven cars will dominate travel within ten years.
- Neuralink and SpaceX developments highlighted alongside robotaxi expansion plans.
Elon Musk said on Monday that fully self-driving vehicles operating without human safety monitors are expected to become more common across the United States later this year, following their introduction in Texas.
Speaking via video link at the Smart Mobility Summit in Tel Aviv, Musk said self-driving cars were already operating in Texas without safety monitors and that the service would expand nationwide this year.
Tesla pushes ahead with robotaxi plans
Tesla, which has faced slowing vehicle sales, currently operates robotaxis in Austin, Dallas, and Houston.
Last November, the company received a permit to operate a ride-hailing service in Arizona.
Musk, who has made a series of ambitious predictions regarding autonomous driving technology over the past decade, many of which have failed to meet his projected timelines, said he still expects self-driving technology to become dominant within the next 10 years.
“Five years from now and certainly 10 years from now probably 90% of all distance driven will be driven by the AI in a self-driving car,” Musk said.
“So overwhelmingly, it'll be quite a niche thing in 10 years to actually be driving your own car,” he added.
Safety concerns remain in focus
The comments come as autonomous driving technology continues to face regulatory and safety scrutiny in the United States.
Earlier this month, Tesla recalled 218,868 vehicles in the US after delayed rearview camera images were found to increase crash risks, according to the National Highway Traffic Safety Administration.
Meanwhile, Waymo, owned by Alphabet, recalled around 3,800 robotaxis in the United States last week after identifying a risk that vehicles could enter flooded roads with higher speed limits.
The issue raised additional concerns surrounding the safety and reliability of autonomous vehicle systems as companies accelerate commercial deployments.
SpaceX and Neuralink projects highlighted
During the summit, Musk also discussed developments at SpaceX and Neuralink.
He said SpaceX was close to developing reusable rocket launch systems capable of significantly reducing the cost of space travel.
“We might succeed in doing that this year,” Musk said.
Musk also said Neuralink plans to carry out its first implant using the company’s Blindsight device later this year.
The device is intended to help people born without sight or with impaired vision.
“It will give them initially limited vision, but I think over time very precise vision, perhaps super, super human vision,” Musk said.
He added that the company was also working on technology aimed at enabling paralysed individuals to walk again.
Musk predicts rise of humanoid robots
Musk further stated that humanoid robots could become widespread within the next decade.
According to him, increased productivity from robots could help drive economic growth and lead to what he described as universal high income.
“You need to build a brand on a vision, but also be willing to adapt to the changing environment, whether it's external or internal,” Musk said during the discussion.

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