Tesla stock has been on a turbulent ride this past month, experiencing notable declines even as CEO Elon Musk continues to make ambitious announcements about the company’s future. Amid uncertainty, Musk’s latest revelation about expanding Tesla’s robotaxi services has investors and tech enthusiasts buzzing with anticipation.

On June 22, Tesla officially rolled out its limited robotaxi ride-hailing service in Austin, Texas, marking a significant step toward the long-promised future of fully autonomous transportation. Initially quiet following its launch, Musk recently reignited excitement when he announced Tesla’s immediate plans to scale up this service.

Taking to his social media platform X late Wednesday night, Musk revealed that Tesla’s robotaxi program would be “expanding” this weekend to cover a larger portion of Austin. Moreover, Musk added another bold promise: robotaxi versions of the Model Y would soon hit roads in the Bay Area, California, potentially within just one to two months, pending regulatory approvals.

This fresh burst of news sent a modest wave of optimism through investors, causing Tesla’s stock price to climb approximately 2.8% to $304.20 on Thursday after a challenging week. Before Musk’s announcement, Tesla shares had slumped by about 0.7%, closing at $295.88 the previous day. However, the stock’s overall trajectory since the initial June robotaxi launch has seen a noticeable downturn, reflecting broader concerns among investors about the EV maker’s prospects.

Dan Ives, a respected analyst at Wedbush Securities known for his bullish outlook on Tesla, praised Musk’s recent announcement as a positive sign. According to Ives, Musk’s reaffirmation of Tesla’s autonomous vehicle ambitions provided a much-needed morale boost, particularly after recent doubts about the feasibility and timeline of the company’s ambitious robotaxi plans.

But despite the momentary uptick following Musk’s announcement, Tesla’s broader outlook still shows signs of vulnerability. Since late June, Tesla stock has dipped approximately 8%, reflecting deeper uncertainties about the company’s production capacity, declining deliveries, and shifts in key management roles.

Recently, Tesla reported second-quarter deliveries totaling 384,122 vehicles. While this figure was better than some analysts feared, it still marked a troubling 13.5% decline from the previous year. Moreover, Tesla’s production numbers remained stagnant year-over-year, a notable concern given the company’s ambitious growth projections.

Adding to investor worries was the recent departure of Omead Afshar, Tesla’s head of operations for North America and Europe, and a trusted longtime associate of Musk. Afshar’s exit has sparked speculation about internal dynamics and potential instability within Tesla’s leadership circle.

Additionally, external pressures continue to challenge Tesla’s sales projections. The company recently began prominently advertising the imminent expiration of the Biden administration’s $7,500 EV tax credit, attempting to generate urgency and bolster third-quarter sales. This comes as Tesla contends with mixed demand dynamics, balancing potential sales losses from politically motivated boycotts on the left with gains from right-leaning consumers who support Musk’s outspoken political stances.

Nevertheless, Musk has publicly downplayed these issues, confidently asserting in interviews that Tesla does not face a demand problem. He pointed to Tesla’s resilient stock price as evidence of continued investor confidence, even though Tesla shares remain significantly below their all-time high of $488.54.

Yet, the reality of Tesla’s fluctuating share price paints a more complex picture. Following the initial excitement generated by the robotaxi announcement in June, Tesla stock has struggled to maintain its momentum. The recent volatility reflects investors’ hesitance to fully embrace Musk’s promises without tangible progress and sustained results.

Looking ahead, Musk’s vision of robotaxis becoming a mainstream transportation option remains alluring but uncertain. Regulatory hurdles, technological refinement, and consumer trust all present formidable barriers Tesla must overcome before achieving Musk’s grand ambitions. Additionally, the competitive landscape is intensifying as other automakers and tech giants aggressively pursue their own autonomous vehicle initiatives.

In the short term, Tesla investors will likely remain cautious, closely monitoring the promised expansions in Austin and the highly anticipated rollout of robotaxi Model Ys in California. These milestones will significantly influence investor confidence, potentially reversing recent pessimism if successful—or deepening doubts if delays persist.

Ultimately, Tesla’s next moves could define not only the future of the company but also the broader trajectory of autonomous transportation. Musk’s ambitious promises and the market’s skeptical reactions continue to create an intriguing narrative, leaving observers and investors alike waiting anxiously to see what happens next.