Tesla (TSLA) shares edged lower on Thursday as investors weighed incremental progress in the company’s autonomous driving efforts against broader weakness across technology stocks.
Shares of the electric vehicle maker fell 1.04% in early trading, underperforming a broader market decline that saw the S&P 500 slip 0.2%.
The weakness came amid a difficult session for technology stocks. Nvidia fell 0.5%, while Intel dropped 3.1%.
Sentiment across the semiconductor sector was pressured after Broadcom’s fiscal second-quarter results disappointed investors, sending its shares down 15.5%.
Robotaxi expansion draws attention
Investor focus remained centered on Tesla’s autonomous driving ambitions, particularly developments surrounding its robotaxi operations in Austin, Texas.
Barclays analyst Dan Levy wrote in a research note this week that Tesla had removed safety monitors from robotaxis operating within its Austin geofence.
The development coincided with an expansion of the operating area, which more than doubled in size on Wednesday.
The expanded zone now includes highway driving along Interstate 35 as well as suburban areas, including Pflugerville and Manor.
According to Levy, the unsupervised fleet peaked at roughly 25 vehicles in late April based on independent tracking data.
The move represents another step in Tesla’s efforts to scale autonomous ride-hailing services, which have become a central pillar of the company’s long-term growth narrative.
Tesla trails Waymo in fleet size
Despite the broader operating area, Tesla remains significantly smaller than Alphabet-owned Waymo in terms of active robotaxi deployments.
Recent filings show Waymo has 577 robotaxis registered in Texas, approximately 13 times Tesla’s statewide total of 42 vehicles.
The company has previously said about 300 of those vehicles operate in Austin.
As a result, Tesla’s active fleet remains only a fraction of Waymo’s presence in the city.
However, the two companies rely on different technological approaches.
Tesla’s vision-based autonomous driving system allows geographic expansion largely through software updates, while Waymo’s reliance on LiDAR sensors and high-definition mapping requires extensive scanning and validation of new operating areas.
The contrast has left Tesla with a broader geographic reach in Austin, while Waymo maintains a significantly denser fleet.
Analysts update outlook
Wall Street analysts continue to refine their forecasts as Tesla balances vehicle demand with long-term investments in artificial intelligence and autonomy.
As per an Investing.com report, Wolfe Research reiterated its Peerperform rating on Tesla and raised its 2026 earnings-per-share estimate to $1.89 from $1.62.
The revised estimate remains slightly below the consensus forecast of $1.93.
At the same time, Wolfe lowered its 2027 earnings estimate to $2.04 from $2.17, citing expectations for higher depreciation, amortization, and operating expenses.
The new forecast sits below the consensus estimate of $2.46.
Separately, TD Cowen reiterated its Buy rating and $490 price target on Tesla shares.
The firm highlighted potential demand for a long-wheelbase Model Y variant in the United States, estimating annual sales of between 60,000 and 135,000 units if the vehicle is launched domestically.
According to TD Cowen, the Model Y L’s three-row seating configuration could appeal to a sizable segment of the SUV market priced above $50,000.
The firm said a US launch could be received positively by investors, particularly as early signs emerge of a recovery in domestic electric vehicle demand.
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