Tesla stock hits record $489.9 as driverless tests begin in Texas

Tesla shares closed at a record US$489.9 on December 16, rising 3.1% and surpassing the stock’s previous all-time high set nearly a year ago.

The rally follows CEO Elon Musk saying Tesla has begun testing driverless vehicles without occupants in Austin, Texas, building on a pilot program that used safety drivers.

Tesla’s stock is up 21% for the year despite a 36% drop in Q1 and ongoing declines in EV sales.

The company reported a 13% drop in deliveries and a 20% drop in auto revenue in Q1, with auto revenue falling 16% in Q2. Tesla’s Q3 revenue rose 12% as buyers rushed to purchase EVs before a federal tax credit expired.

Competition from BYD, Xiaomi, and Volkswagen, plus the loss of tax credits and backlash tied to Musk’s political activity, continue to impact sales.

🔗 Source: CNBC

🧠 Food for thought

Implications, context, and why it matters.

Tesla’s ‘driverless’ claims hide a rules gap that could slow a launch

Tesla lacks California Department of Motor Vehicles (DMV) permits to test vehicles without safety drivers, unlike competitors Waymo (Alphabet’s self-driving unit) and Zoox (Amazon-owned autonomous vehicle company) 1.
In California, Tesla holds a transportation charter permit for employee transport using human drivers, not for autonomous passenger service 2.
Tesla still needs DMV permits for driverless testing and for rollout, plus California Public Utilities Commission (CPUC) approval for passenger service before any commercial robotaxi launch 2.
Tesla more than tripled its California safety drivers to 224 in December, which signals ongoing human supervised testing rather than deployment 1.

Teleoperations vendors could benefit as Tesla ramps up safety driver oversight

Tech companies and mobility investors may see new demand for third party teleoperations platforms such as Ottopia 3. These tools provide help or remote driving for edge cases (rare or unusual situations) and for fleet management 3.
Vay runs commercial remote driving from control centers in Las Vegas, which points to a workable model for firms that support supervised fleets 4.
Tesla is expanding testing in Texas, California, Nevada with hundreds of safety drivers plus remote operators 1. That opens work for staffing firms and training academies focused on autonomous vehicle safety operations 1.
Vendors that sell teleoperation hardware (equipment used to drive vehicles remotely), including remote driving stations with cockpit controls and surround view video, could partner with Tesla or rivals that run supervised testing 3.