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Rani Molla

Tesla to expand robotaxi service area in Austin “this weekend” and to the Bay Area “in a month or two”

Tesla CEO Elon Musk said the company’s robataxi, which launched last month to a limited ridership in a limited area in Austin, will expand its coverage area in the city “this weekend.” Musk also posted on X that the service would expand to the Bay Area “in a month or two,” pending regulatory approvals. He didn’t give much else in the way of details, like where else in Austin the robotaxi would operate, or if and when it would stop requiring a human employee to sit in the passenger seat.

The stock is up 1% premarket.

“We view Musk’s comments as positive relative to the recent shift in investor sentiment regarding Tesla’s autonomous vehicle efforts,” wrote Wedbush Securities analyst Dan Ives, who mercifully does not appear to be acquiescing to Musk’s request that he “shut up.”

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Nearly 20% of Meta’s Chinese ad revenue came from scams and other banned content: report

Meta found that 19% of the $18 billion in ad sales in China last year came from ads for scams, illegal gambling, pornography, and other banned content, according a new report from Reuters, which examined the company’s internal documents. The latest report comes on the heels of another Reuters investigation that found 10% of its global revenue last year came from such ads. Chinese advertisers represent a growing share of the company’s revenue.

To combat the situation, Meta created an anti-fraud team that briefly managed to cut back the rate of problematic ads, but after CEO Mark Zuckerberg weighed in, the group was disbanded. Fraud rates then returned to 16% of Meta’s China revenue by mid-2025.

The trove of documents, Reuters said, “reveals Meta’s efforts over that period to understand the scale of abuse on its platforms and the company’s reluctance to introduce fixes that could undermine its business and revenues.”

To combat the situation, Meta created an anti-fraud team that briefly managed to cut back the rate of problematic ads, but after CEO Mark Zuckerberg weighed in, the group was disbanded. Fraud rates then returned to 16% of Meta’s China revenue by mid-2025.

The trove of documents, Reuters said, “reveals Meta’s efforts over that period to understand the scale of abuse on its platforms and the company’s reluctance to introduce fixes that could undermine its business and revenues.”

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Dan Ives’ rosy predictions for Tesla

Wedbush Securities analyst and Tesla bull Dan Ives is excited for the company’s new year and next decade. To demonstrate, Ives, who says he “never viewed Tesla simply as a car company,” published a series of characteristically bold predictions today. Here’s what he thinks.

Autonomous expectations:

  • Aggressive Robotaxi expansion across the US next year, reaching 30-plus cities.

  • Volume production of Cybercabs beginning in April or May, with full-scale production of autonomous vehicles and robotics ramping later in the year.

  • Tesla will command about 70% of the global autonomous market over the next decade (a view that differs from Morgan Stanley’s).

  • Full Self-Driving penetration could rise above 50% (up from 12% now), which Ives said would “change the financial model/margins” for Tesla.

Regulatory regression:

  • Federal regulatory barriers around FSD/autonomous driving will ease significantly under President Trump, according to Ives.

  • He expects an executive order in early 2026 that would shift more authority to federal regulators and reduce state-level control over autonomous driving rules.

Financial predictions:

  • With a current ~$1.4 trillion market cap, Tesla could reach $2 trillion within the next year, with a bull case of $3 trillion by end of 2026.

  • Ives reiterated his $600 price target and outperform” rating.

  • In a bull case scenario, he sees Tesla, now around $465, at $800 within 12 to 18 months.

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Tesla is testing Robotaxis in Austin without people in the front (or back)

It looks like Tesla’s driverless cars are finally ditching the driver. On Sunday, eyewitnesses spotted at least two Robotaxis driving around Austin without safety monitors — the Tesla employees who’ve been stationed in the front seats since the service launched in June.

In a post on X, CEO Elon Musk confirmed that the company is testing the service “with no occupants in the car” — so no safety monitors or passengers.

The development suggests that Tesla is making progress toward its promise, announced on its last earnings call, of removing safety drivers from the ride-sharing service in “at least large parts of Austin” by year’s end. Just last week at an xAI event, Musk reiterated that timeline.

Having a truly autonomous ride-hailing service would bring Tesla closer to catching up with Google’s Waymo, which is leading the battle for the driverless future. Tesla ultimately hopes to use its autonomous tech to turn much of its existing fleet into driverless cars and quickly scale its Robotaxi service — a move that would help prove itself to be an AI company rather than just a car company.

Always ahead of the curve, Musk last week told a Google executive that “Waymo never really had a chance against Tesla.”

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