Tesla Inc is currently in preliminary discussions with Austin, Texas, to advance its autonomous vehicle technology, with hopes for a rollout as early as 2025.

During an October earnings call, CEO Elon Musk revealed that Tesla is pilot-testing a ride-hailing service in the Bay Area, utilizing an internal app and vehicles equipped with safety drivers.

While Tesla's Full Self-Driving (FSD) features still require driver supervision, Musk predicts that certain models will soon operate without it.

Musk is reportedly positioning himself to influence the incoming Trump administration, which may lead to relaxed regulations on autonomous vehicles.

Since Donald Trump's re-election, Tesla's stock has surged, as investors believe Musk's influence could help navigate regulatory challenges for the company's technology.

General Motors has recently shut down its Cruise robotaxi platform after investing $4.4 billion, leaving Tesla and Waymo as the primary competitors in the robotaxi market.

Musk has criticized competitors like Waymo for their localized rollout strategies, asserting that Tesla aims to create a more universal solution for autonomous driving.

In Texas, regulatory hurdles for autonomous vehicles are minimal, as the state treats them as regular vehicles subject to general traffic laws, unlike California's stringent framework.

Austin Mayor Kirk Watson has expressed skepticism about the readiness of autonomous technology, urging proactive engagement from companies testing in the city.

Tesla is collaborating with local first responders in Austin to prepare for the deployment of its autonomous Robotaxi service.

Following the news of these developments, Tesla's stock rose approximately 3% in premarket trading on December 19, 2024.

Analysts view Tesla's autonomous driving ambitions as critical for the company's future, with predictions of significant market capitalization growth, potentially reaching $2 trillion by the end of 2025.