Key Highlights
- Nevada’s Transportation Authority granted autonomous vehicle permits to Tesla, Waymo, and Aviari on Friday
- Tesla received authorization to operate up to 5,000 robo-taxis across Nevada within the coming 12 months
- Waymo and Aviari were granted permits for 1,000 autonomous vehicles apiece
- Tesla shares surged 5.1% on Friday, though the stock has declined 19% year-to-date, currently trading near $362
- Following the permit approval, Citizens analyst Andrew Boone maintained a Market Perform rating on Tesla
Tesla received significant regulatory approval on Friday as Nevada’s Transportation Authority voted unanimously to grant commercial robo-taxi permits to Tesla, Alphabet’s Waymo, and Aviari.
Among the three companies, Tesla secured the most substantial permit. The electric vehicle manufacturer can now deploy up to 5,000 fully autonomous vehicles throughout Nevada’s roads during the next 12-month period. Meanwhile, both Waymo and Aviari obtained authorization for 1,000 vehicles each.
On Friday, Tesla shares climbed 5.1%. However, during Monday’s premarket session, the stock dipped 0.2% to $362.07. Entering this week, TSLA has experienced a 19% decline for the year.
The electric vehicle maker initially rolled out its robo-taxi service in Austin, Texas during June 2025. Progress since the launch has been gradual. The autonomous taxi service is presently operational in select cities, including Dallas and Houston.
This Nevada authorization represents one of Tesla’s largest single-market robo-taxi approvals to date. While securing the permit marks an important milestone, the actual deployment of 5,000 autonomous vehicles presents a separate challenge.
Why Tesla Has an Advantage in Autonomous Taxi Services
Tesla possesses several meaningful competitive advantages in this space. The automaker has operated its autonomous driving technology across hundreds of thousands of its vehicles for multiple years. Additionally, since Tesla manufactures its own vehicles, the company can expand robo-taxi operations more rapidly and cost-effectively compared to rivals who must purchase vehicles from external suppliers.
Despite these strengths, Citizens analyst Andrew Boone maintained a Market Perform rating on Tesla after the announcement. With a P/E ratio of 336.4 and a market capitalization approaching $1.43 trillion, InvestingPro data suggests the stock trades above its Fair Value.
GLJ Research maintained its Sell rating on Tesla, citing a second-quarter operating margin of merely 1.4% and negative free cash flow totaling $1.1 billion.
TD Cowen retained its Buy rating, emphasizing Tesla’s strong position within the autonomous vehicle sector.
Additional Tesla Developments
Tesla also announced a recall affecting nearly 3 million vehicles in China, set to begin September 25. The recall encompasses the Model 3, Model Y, Model S, and Model X due to emergency door release handles that may be difficult to locate during emergencies. Tesla will address the problem through warning labels and an over-the-air software update.
In business developments, Tesla has formed a partnership with Einride to introduce 500 Tesla Semi trucks for Amazon throughout North America.
Nevada also granted Uber authorization for 1,000 autonomous vehicles via its partnerships with Motional and Zoox. Last week, Uber launched its inaugural European autonomous ride service in Zagreb, utilizing Pony.ai drivers and Verne-owned vehicles. Citizens maintains a Market Outperform rating on Uber with a $100 price target, anticipating significant autonomous supply growth on the Uber platform during Q4 2026 and throughout 2027.
Tesla’s Austin-based robo-taxi service is scheduled to become publicly available in August.
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