Tesla Inc. is preparing to roll out its long-awaited robotaxi service later this month, but excitement in the markets has been muted as political tensions between CEO Elon Musk and President Donald Trump draw traders’ attention elsewhere.
Initially expected to debut on June 12, the robotaxi launch is now tentatively scheduled for June 22, according to Musk, who emphasized that the timeline could change due to safety considerations.
“We are being super paranoid about safety, so the date could shift,” he wrote on X, the social media platform he owns.
Despite the milestone, options traders are showing little urgency. Data compiled by Piper Sandler indicates Tesla options are pricing in a 5.4% stock move for the week ending June 13—significantly below the company’s average weekly move over the past year. Analysts say the market appears more focused on Musk’s recent public fallout with President Trump, which coincided with a 23% drop in Tesla’s share price from peak to trough.
“The feud is dominating the narrative,” said Dave Mazza, CEO of Roundhill Financial. “It’s become difficult to separate the political noise from the company’s product roadmap.”
Tesla’s options activity reflects that uncertainty. Bearish put option volume surged by 375% during the height of the Musk-Trump spat, according to Barclays data, as investors hedged against further downside risk. The company’s implied volatility now stands at 65%, the highest among the top 300 S&P 500 stocks, with Tesla’s options trading volume recently overtaking Nvidia’s, according to Asym 500.
Analysts also note that expectations for the robotaxi service have been scaled back. In a recent interview with CNBC, Musk indicated that the rollout would begin with a limited fleet in Austin, Texas. He also shared a promotional video showing a vehicle navigating city streets without a driver, hinting at an imminent launch in the area.
Still, doubts persist. Several Wall Street analysts have tempered their forecasts. Robert W. Baird’s Ben Kallo, previously bullish on Tesla, downgraded the stock this week, citing skepticism about the robotaxi unit’s profitability. Oppenheimer’s Colin Rusch similarly cut profit and sales projections, suggesting Tesla may need additional hardware and software refinements before the service can meet expectations.
“Even a flawless debut might not move the stock significantly,” said Steve Sosnick, chief strategist at Interactive Brokers. “It would take a major failure for it to become a make-or-break event. Anything short of that could still be spun as progress.”
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