Why Tesla Jumped by 8%

On Sunday, Tesla (TSLA) kicked off the testing phase of its robotaxi. CEO Elon Musk said that the service will charge a $4.20 flat fee. This low price is highly competitive. Riders may hail a Tesla Model Y robotaxi.Tesla has between 10 to 20 Model Y vehicles designated for robtaxi service. However, the rides are geofenced in Texas. In addition, the ride is not truly autonomous. The company will allow teleoperators and Tesla staff occupying the passenger seat to intervene.Google CompetitionTesla has a long way to go before Google’s (GOOG) Waymo needs to worry. Although Waymo rides cost more than those offered from Uber (UBER) or Lyft (LYFT), the firm has established its safety record. It completed 10 million robotaxi trips as of May 2025.Investors should consider GOOG stock. Shares continue to trade at a discount, with a price-to-earnings multiple of 18.42 times. The stock is in an uptrend but has fallen since its $180 price in mid-June. Investors are negative on Google stock after the EU’s top court received a recommendation to dismiss a EUR 4.1 billion fine against it. By comparison, TSLA stock bottomed in the $230 range in March to close at $348.68. Its P/E is 192 times, while its forward P/E is 118.5 times.Investors continue to assign a steep premium. They are willing to bet that Tesla’s future in robotaxis and robotics remains bright.