Tesla seen ’meaningfully’ increasing its robotaxi fleet size in 2026

Investing.com -- Tesla is moving closer to scaling its vision-only robotaxi platform, with Morgan Stanley stating in a note that it expects a sharp increase in fleet size next year as key technical and regulatory milestones come into view.

Morgan Stanley analyst Andrew Percoco stated that videos posted on X (formerly Twitter) and confirmed by CEO Elon Musk show Tesla testing robotaxis in Austin, Texas, “without a safety monitor (or passengers).”

The bank called Tesla’s ability to remove the safety monitor and improve safety metrics “the single most important NT catalyst in validating its robotaxi strategy.”

Percoco added that a “robust and reliable robotaxi fleet should serve as a clear precursor to the accelerated deployment of fully unsupervised personal FSD,” reinforcing Morgan Stanley’s bullish view on Tesla Mobility.

The testing is said to align with Tesla’s stated goal on its third-quarter call to remove the safety monitor by year-end.

Looking ahead, Morgan Stanley highlighted three catalysts that will determine the pace of scaling. These are opening robotaxis to the public without a safety monitor, improving safety metrics as miles driven increase, and the start of Cybercab production, targeted for April 2026.

“We expect Tesla to meaningfully increase its robotaxi fleet size in 2026,” Morgan Stanley wrote.

While Tesla has taken a cautious approach in Austin and San Francisco, the bank expects the fleet to rise to “1,000 vehicles on road in 2026, up from a handful today.”

By the end of 2035, Morgan Stanley expects Tesla to have “1mn robotaxis on the road across multiple cities.”

You May Also Be Interested In

• Tesla sales in Spain drop 78.8% in August
• Palo Alto Networks’ quarterly profit jumps as AI security demand accelerates
• Is a U.S. debt crisis really imminent? Yardeni weighs in