• Tesla’s Model Y robotaxis are now testing without safety monitors.
  • The change sent shares up nearly 5% before settling slightly lower.
  • Musk confirmed the no-occupant tests with a short Twitter post.

“Testing is underway with no occupants in the car.” It’s a short sentence, but those eight words carry major implications for Tesla, its investors, and the future of autonomous vehicles. That line comes from Tesla CEO Elon Musk, after someone spotted something unusual.

A brief clip surfaced showing a Model Y driving solo through the streets of Austin, with no one at the wheel, no one inside at all. That’s a big step forward for Tesla, and Musk’s confirmation has Wall Street stoked.

More: Tesla’s California Robotaxis Are More Taxi Than Robot

In practical terms, Tesla’s robotaxis are now testing, at least in Austin, to some degree, without human safety monitors. The stock jumped as much as 4.9%, hitting $481.37 (before dropping slightly) and marking its highest level in nearly a year.

That move pushed Tesla closer to last December’s record highs, underscoring just how tightly the company’s valuation is tied to optimism around self-driving technology rather than its day-to-day car business.

Tesla quietly launched a limited robotaxi service in Austin back in June using modified Model Y vehicles equipped with Full Self-Driving software. Until now, those cars were geo-fenced and carried a human “safety monitor” in the front passenger seat. Removing that final layer of human oversight, even in testing, is a meaningful step forward.

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As Reuters points out, much of Tesla’s roughly $1.53 trillion market valuation is built on expectations that autonomy and robotics will eventually dwarf profits from selling cars. Analysts say Monday’s rally reflects confidence that Tesla is accelerating toward that vision, especially as it prepares to launch its purpose-built Cybercab next year.

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“The news Tesla is testing robotaxis without the safety monitors is in line with our expectations that the company ⁠is making progress in its testing, in ​line with management’s statements during the third ​quarter earnings call,” said Seth Goldstein, senior equity analyst at Morningstar. “The market is cheering the progress, sending shares higher today.”

Ultimately, Tesla still has a ton of work to do before it achieves its own goals. Regulators could slow progress. On top of that, there are new questions swirling around compensation packages for Tesla’s board.

A CTV News report says that directors have earned more than $3 billion, which is dramatically more than peers at similar companies. At this point, long-term success is likely the only way that such paydays can continue.