• Tesla shares gained after CEO Elon Musk announced plans to double the Model Y robotaxi fleet in Austin, Texas, to about 60 vehicles by December.
  • The expansion falls significantly short of Musk's earlier target of 500 robotaxis by the end of 2025, highlighting ongoing deployment challenges.
  • The company's autonomous driving ambitions remain a key focus for investors, even as current operations are limited to just a few metro areas.

Tesla Inc.'s stock climbed in midday trading Tuesday following a post by Chief Executive Elon Musk on X, the social media platform he owns, detailing an expansion of the company's robotaxi service. Musk stated that the fleet of Model Y-based robotaxis operating in Austin should roughly double in December, bringing the total number of vehicles to approximately 60.

The move represents a tangible, albeit modest, step forward for Tesla's long-promised autonomous future. However, it also underscores the gap between Musk's ambitious public targets and the current pace of real-world deployment. The planned expansion to 60 vehicles is a far cry from the 500 robotaxis Musk had previously targeted for the end of 2025, according to people familiar with the company's internal goals.

"While the doubling of the fleet is a positive signal, it's a far cry from the scale needed to meaningfully impact Tesla's financials or validate its autonomous technology at a commercial level," said an analyst who asked not to be named because they are not authorized to speak publicly. The company's robotaxi service currently remains confined to Austin and the Bay Area, with Phoenix expected to be added to the network soon.

Tesla's autonomy push comes as the company navigates a mixed financial landscape. In its most recent quarterly report, Tesla posted an 11% year-over-year increase in revenue to $25.2 billion, but net income fell 18% due in part to heavy investment in autonomous technology and intensifying price competition in the electric vehicle market.

Musk continues to promote a vision of a vast, decentralized robotaxi network, aiming for operations in 8 to 10 major metropolitan areas by the end of next year. Achieving that goal would require a massive and rapid acceleration of both vehicle deployment and regulatory approvals. A spokesperson for Tesla did not immediately respond to a request for comment on the fleet expansion or the revised timeline.

Correction: An earlier version of this article misstated the timeline for the 500-vehicle target. It was a target for the end of 2025, not 2024.