Tesla CEO Elon Musk speaks alongside U.S. President Donald Trump to reporters in the Oval Office of the White House on May 30, 2025 in Washington, DC.
Kevin Dietsch | Getty Images
In the three trading days since Elon Musk’s war of words with President Donald Trump last week sank Tesla’s market cap by 14% in a single session, the stock has rallied almost all the way back.
Tesla shares rose 5.7% on Tuesday to close at $326.09 on Tuesday, leaving the stock about $6 short of where it was trading last Wednesday, before the Musk-Trump brouhaha exploded across social media.
The latest jump came after Musk shared a video on X showing that Tesla was testing driverless vehicles on the roads of Austin, Texas, without a human safety supervisor behind the wheel. The eight-second clip showed the latest version of the Model Y SUV, painted black with a white “Robotaxi” graffiti-style logo painted on it, navigating an intersection and pausing to allow pedestrians to traverse a crosswalk.
After years of delays and unfulfilled promises left Tesla well behind rivals like Alphabet’s Waymo in the robotaxi market, Musk’s company finally appears poised to put its autonomous driving technology on public streets, even if in a very limited capacity to start. Bloomberg previously reported that Tesla is expected to officially launch its “pilot” for a driverless ride-hailing service in Austin on June 12, though the company hasn’t confirmed the timing beyond saying that it’s coming in June.
Musk recently told CNBC’s David Faber that Tesla will start with a very small rollout, including about 10 to 20 of its robotaxis, with a new, “unsupervised” version of the company’s FSD or “Full Self-Driving” technology installed. The tests will involve the Model Y, not the futuristic looking CyberCab that Tesla plans to produce next year.
Musk said Tesla will “geofence” the service, limiting where the robotaxis can initially operate, and that employees will remotely monitor the fleet.
A Tesla automobile owned by President Trump (he does not drive it but some staffers do) is parked in a lot next to the White House fence in Washington, D.C. on June 05, 2025.
Michael S. Williamson | The Washington Post | Getty Images
Tesla is now listed as “testing” on an official website for the city of Austin, EV fan blog Teslarati first reported. The site shares information about autonomous vehicle companies operating in Austin.
Waymo, which operates a commercial fleet in the Texas capital, is the only autonomous vehicle maker listed with a “deployment” designation, rather than “mapping” or “testing” on the Austin site. The company also has commercial robotaxi services running in parts of the San Francisco Bay Area, Phoenix, and Los Angeles.
In Austin, Amazon’s Zoox is listed as testing, as is AVRide, a self-driving vehicle developer that spun out of Russian tech firm Yandex.
Sawyer Merritt, a Tesla promoter and fan, originally posted the clip of the Model Y operating on FSD-Unsupervised in Austin.
“BREAKING: First ever Tesla Model Y robotaxi with no-one in the drivers seat spotted testing on public roads in Austin, Texas!” Merritt wrote on X.
Last week’s spat
Musk shared the post, adding, “Beautifully simple design.” He later wrote, “These are unmodified Tesla cars coming straight from the factory, meaning that every Tesla coming out of our factories is capable of unsupervised self-driving!”
Musk, the world’s richest person, is coming off a bruising week. After his term running the Trump Administration’s Department of Government Efficiency (DOGE) officially came to an end, Musk and the president began feuding, partly due to the contents of the spending bill that’s being debated in congress. The spat turned personal on Thursday, with both men hurling insults at each other from their respective social media platforms.
The stock was already getting hit but took a sharp turn lower after Trump said Musk had gone “CRAZY” and threatened to end government contracts and cut off subsidies for his companies. In addition to Tesla, Musk also runs defense contractor SpaceX, artificial intelligence startup xAI (which owns X), health tech company Neuralink and drilling venture The Boring Company.
While Trump said he “would assume” his relationship with Musk is over, the president is known to for his transactional approach. The stock bump early this week may be in part a reaction to a more contrite Musk, who has deleted some of the most pointed insults that he previously lobbed at Trump, and has appeared to endorse the president on other policy matters like immigration.
Tesla investors have been urging Musk to refocus his attention on the electric car maker after a brutal first quarter that saw automotive revenue plunge 20% due to increased competition from lower-cost EV makers in China and a consumer backlash to Musk’s political activities and rhetoric. In key markets throughout Europe and China, Tesla’s year-over-year sales declined in the first two months of the second quarter.
In a report to clients on Tuesday, analysts at Piper Sandler wrote, regarding driverless cars being spotted in Austin, that “a key component of our TSLA thesis has officially begun playing out.” The firm has a buy rating on the stock.
Philip Koopman, an auto safety researcher and associate professor of computer engineering, told CNBC that investors shouldn’t get too carried away at the sight of Tesla running driverless vehicles on public roads.
“We don’t know enough from the company, or from this clip, to know if these vehicles are going to be safe, how they operate and what it costs,” Koopman said, referring to the video shared by Musk. He said he expects Tesla to rely heavily on so-called “remote assistants,” or people who watch the company’s robotaxis from a computer in a service center, with the ability to take over control if needed.
OpenAI is rapidly expanding its presence in India — one of the key markets for its flagship ChatGPT product.
India is an appealing destination for U.S. tech giants, with companies ranging from Google to Meta betting on its huge — and young — population over recent years.
OpenAI CEO Sam Altman visited the country in February this year and met with the country’s IT Minister Ashwini Vaishnaw to discuss collaboration. During the visit, Altman said India was OpenAI’s second-largest market by number of users.
He has subsequently said that AI adoption in India is “amazing to watch.”
“We love to see the explosion of creativity–india is outpacing the world,” he said on X earlier this year.
India is one of ChatGPT’s fastest-growing markets globally, Nick Patience, practice lead for AI at tech research and analysis firm Futurum Group, told CNBC. “OpenAI’s India focus is a strategic move to gain a competitive edge,” he added.
Here’s a rundown of how OpenAI is expanding in India.
ChatGPT explosion
ChatGPT, OpenAI’s core product, has seen strong growth in India. The app was downloaded 10.2 million times in India in August, a huge jump from the 2.5 million downloads seen during the same month last year, according to analytics firm Appfigures.
Since its launch, ChatGPT has 111 million downloads in India, ahead of its 80 million downloads in the U.S, Appfigures data shows.
Downloads do not necessarily equal daily or monthly users, but the figures emphasise OpenAI’s growth trajectory in the country.
The download numbers are also far ahead of rivals, including Google’s Gemini and Anthropic’s Claude. The closest challenger was Perplexity, Appfigures said, which had 6.4 million downloads in August.
India-specific product
User spending on ChatGPT has been increasing. To date, Indian users have spent $21.3 million on ChatGPT, Appfigures data shows. In comparison, U.S. users have spent $784 million.
That underlines the fact that while the number of users in India is huge, it remains a price-sensitive market.
“It’s a classic wedge strategy to capture a price-sensitive market and build a user base that will be difficult for local players to dislodge later,” Futurum Group’s Patience said of the strategy.
Infrastructure and hiring
According to Bloomberg, OpenAI is scouting a location in India for a data center with at least 1-gigawatt capacity. The facility will be part of OpenAI’s Stargate-branded infrastructure push, Bloomberg said this week, although CNBC was unable to verify the report.
The ChatGPT developer said last month that it would open a local office in the market and is currently advertising three sales roles in India.
It also announced last month an education program in India that will include funding for research and provide half a million ChatGPT licenses for educators and students across the country.
India challenges
While India doesn’t have a home-grown artificial intelligence company as big as OpenAI, there are some challengers in the form of domestic startups, including Sarvam AI and Krutrim, and other American tech giants like Google and Meta.
Continued geopolitical tensions between the U.S. and India over trade, however, have the potential to cause complications if there’s any backlash from New Delhi against American tech firms.
OpenAI is also locked in a legal battle with Asian News International in India, which has accused the ChatGPT developer of using copyrighted material illegally. It’s a closely-watched case in the country for how copyright laws apply in the AI era.
“OpenAI’s success in India is not guaranteed and depends heavily on its ability to navigate these legal and political hurdles,” Futurum Group’s Patience said.
“While the Indian market is vast, its diversity in languages and user needs presents challenges. OpenAI’s ability to deliver a truly localized product and its long-term impact on India’s AI talent remain uncertain.”
Waymo partners with Uber to bring robotaxi service to Atlanta and Austin.
Uber Technologies Inc.
Alphabet’sWaymo unit will begin test-driving robotaxis at its first California-based airport, the company said Thursday.
The autonomous car unit has been cleared to begin testing driverless rides at the San José Mineta International Airport in San Jose, California, this fall. Waymo said it plans to offer paid rides at the airport later this year.
“With San José at the epicenter of the biggest sporting events of 2026, Waymo is an ideal mode of transportation that will help visitors move around the area smoothly and safely,” San José Mayor Matt Mahan said in a release.
The vehicles will pick up passengers at the Ground Transportation Centers in Terminal A or B and roll out to locations in Waymo’s San Francisco Bay Area service area, according to the release.
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Once fully operational, it will be the second international airport where the company has service.
In 2023, Waymo launched at Phoenix Sky Harbor International Airport, which has become the most popular Waymo destination in its Phoenix metropolitan service area, a Waymo spokesperson said Thursday.
Waymo has continued to expand its driverless, ride-hailing service across the U.S. after already launching commercial operations in Austin, Texas, as well as Atlanta, San Francisco, Phoenix and Los Angeles.
In March, Waymo expanded its service to include an additional 27 square miles of coverage around the San Francisco Bay Area, including Mountain View, Palo Alto and San Jose.
Bret Taylor, chairman of the board of directors of OpenAI, attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.
David A. Grogan | CNBC
Bret Taylor’s artificial intelligence startup Sierra has just joined an exclusive club: The company sports a new $10 billion valuation after raising $350 million in fresh capital.
Sierra is one of just a handful of AI startups, including OpenAI, Anthropic, xAI, Safe Superintelligence and Thinking Machines that are valued at or above $10 billion.
Investors are pouring money into this competitive group of companies in the hopes that they’ll eventually hit the public markets.
Taylor is the chairman of OpenAI’s board, and previously served as co-CEO of Salesforce alongside Marc Benioff. Taylor co-founded Sierra in 2023. The company builds and implements AI agents for customer service. AI agents can carry out tasks autonomously on behalf of their users.
Shares of Salesforce fell 5% Thursday after the company reported weak guidance and concerns lingered about how AI is affecting software companies.
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Sierra said its agents are already being used by “hundreds of millions of people” to help with tasks like refinancing homes, ordering lunch, delivering furniture, understanding insurance deductibles and fixing technology, among other things.
Greenoaks led Sierra’s latest funding round, the company said. Its valuation more than doubled from its most recent raise in October.
“We’re in this for the long term,” Sierra said in a blog post on Thursday.
The company said it will use its fresh funding to invest in its platform and focus on domestic and international expansion.
Sierra’s funding follows a flurry of other major AI raises in Silicon Valley. Earlier this week, Anthropic announced it had closed a $13 billion funding round at a $183 billion post-money valuation.