Tesla Shares Rise Nearly 4% On Bay Area Robotaxi Launch Hopes

Shares of Tesla Inc. TSLA are trading higher Friday following reports indicating the company is preparing to launch its robotaxi service in the San Francisco Bay Area as soon as this weekend.

What To Know: According to a Business Insider report, vehicles will operate with safety drivers, Human drivers in the front seat who can intervene using the steering wheel and brakes. Tesla plans to offer the service to a select group of invited Tesla owners who will pay a fee for rides within a defined region that includes Marin County, the East Bay, San Francisco and areas as far south as San Jose.

The company has not yet received the required permits from California regulators to operate fully autonomous vehicles, according to state officials who said Tesla has not filed the necessary applications.

CEO Elon Musk has placed growing emphasis on self-driving technology and robotics, arguing that these areas will eventually contribute significant revenue. However, challenges remain. According to The Information, Tesla is behind schedule in its production of the Optimus humanoid robot, having manufactured only a few hundred units so far, well short of Musk's stated goal of producing at least 5,000 this year.

TSLA Price Action: Tesla shares were up 3.55% at $316.08 at the time of writing, according to Benzinga Pro.

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