Tesla has sent a cryptic message that the expansion of its Robotaxi platform is imminent in an area that the company indicated is a target of the ride-hailing service.

Tesla Robotaxi is currently available in Austin, Texas, but the company has stated for some time that its intention is to expand to California, among other states.

Now, it seems that Tesla is closer than ever to launching Robotaxi in California, based on a new message it sent to users of its Robotaxi app.

We received the message over the weekend, and it required us to accept and agree to new terms. Here’s what it said:

“If your ride is taking place outside of California, it is being conducted autonomously…If your ride is taking place in California, it is being conducted with a safety driver using FSD (Supervised) pursuant to authority from the California Public Utilities Commission.”

🚨 Tesla Robotaxi is close to offering rides in California based on this new message we got in our app.

There is no geofence currently set up in the Bay Area, but we’ll monitor it moving forward. pic.twitter.com/ZrKAqDqQs9

— TESLARATI (@Teslarati) July 26, 2025

The message basically states that Tesla’s Robotaxi rides in Austin will differ from the ones that take place in California in a big way.

In Texas, there is nobody in the driver’s seat. There is a Safety Monitor in the passenger’s seat who simply ensures that everything goes smoothly:

Watch the first true Tesla Robotaxi intervention by safety monitor

In California, there will be a monitor in the driver’s seat, so it will essentially be the same as taking a ride in a vehicle with Full Self-Driving (Supervised).

This will, without a doubt, be a vocal point of the skeptics of the Robotaxi program, but for now, it is proof of Tesla’s “paranoid” focus on safety.

There has not been any established geofence in California within the Robotaxi app, so the program is not yet active in the state. However, it seems the release of the Robotaxi platform in the Golden State is imminent.

Tesla’s Robotaxi platform is the primary focus for the automaker currently, and based on what has been outlined by the company as goals for the project, one firm is saying that the company’s valuation should “far exceed even current levels.”

The Robotaxi is a self-driving ride-hailing service that Tesla plans to implement in current and future vehicle builds. CEO Elon Musk and other executives have said that “the vast majority of the Tesla fleet that we’ve made is capable of being a Robotaxi,” thanks to its development of Over-the-Air software updates that increase the capability of the vehicle with a simple download.

Currently, the Robotaxi platform is only active in a portion of Austin, Texas, but Tesla is expanding to other markets, including California, Nevada, Arizona, and Florida. California will be the next market to open its doors to the Tesla Robotaxi platform.

🚨 Tesla Robotaxi is close to offering rides in California based on this new message we got in our app.

There is no geofence currently set up in the Bay Area, but we’ll monitor it moving forward. pic.twitter.com/ZrKAqDqQs9

— TESLARATI (@Teslarati) July 26, 2025

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But the name of the game is execution, and that’s what Tesla is aiming for in a timely fashion. If it can come through on all of its current goals, its valuation could explode, and one firm is holding steady on that narrative as Tesla continues to work toward expanding Robotaxi.

On Tuesday, RBC Capital analysts bumped their price target on Tesla shares (NASDAQ: TSLA) to $325 from $319, primarily due to the Robotaxi expansion and its success:

“Should Tesla be successful on all of its goals, its valuation could far exceed even current levels. The Austin Robotaxi launch has been better than many feared, and the company is looking to expand in more cities.”

There are some risks to Tesla’s narrative, but they fall outside the scope of what the company can control. In relation to Robotaxi, regulatory hurdles remain. Some regions may be slower than others to give Tesla the proper licensing to operate in their jurisdiction. This could slow the pace of Robotaxi expansion, bringing some overhang to the story.

Additionally, Tesla is fending off narratives of slowing demand, and the White House’s decision to revoke the $7,500 EV tax credit from consumers could temper sales past Q3.

Nevertheless, Robotaxi is where Tesla’s true value seems to be focused. Successfully launching a driverless ride-sharing platform is where the company is putting all of its eggs, and revolutionizing passenger travel is where the focus lies.

RBC Capital’s note continued:

“Regulatory hurdles remain, however. Further, we expect the end of IRA credits and high levels of used EV inventory to pressure the auto business for the next several quarters.”

The slight price target bump puts RBC Capital’s expectations near where the stock is trading, as it is currently priced at around $320 at 9:54 a.m. on the East Coast.

Tesla China saw 10,700 new vehicle registrations in the week of July 21-27, 2025. This represented a 7.6% increase from the 9,900 units that were registered in the previous week, and it suggests that domestic demand for vehicles like the Model Y and Model 3 are holding steady. 

Tesla China’s Registrations

Despite the increase in weekly registrations, Tesla China’s current insurance registrations are still down 21.1% year over year. That being said, Q3 2025 is seeing quite a lot of momentum for Tesla, with the current quarter being 45.2% higher than Q2 2025. With 10,700 new vehicle registrations, the week ending July 27 also represented the second-highest registrations in the quarter so far. 

Tesla China does not report its weekly sales figures, though the company’s overall performance in the electric vehicle sector could be inferred from the new vehicle registrations. Fortunately, these registration figures are tracked closely by industry watchers and even automakers such as Li Auto.

Upcoming Developments

Tesla China sold a total of 71,599 vehicles wholesale in June, as per data from the China Passenger Car Association. This represents a small 0.83% increase from the 71,007 vehicles that were sold in the same period last year, and a 16.12% increase from the 61,662 vehicles that were sold wholesale in May, as noted in a CNEV Post report. Domestic sales in June were at 61,484, the second highest this year.

Tesla China’s sales in the coming months may see some improvement considering that the company is currently preparing to launch a six-seat, extended wheelbase version of its best-selling all-electric crossover called the Model Y L. The Model Y L is expected to be a true family hauler, allowing Tesla to compete more aggressively against rivals in the domestic auto market.