The autonomous vehicle market is rapidly expanding. The segment was worth $41 billion in 2024 and is expected to see a near threefold increase to $115 billion by 2029. According to the data, robotaxis are being recognized as the leading factor in this growth. As per estimates, the robotaxi market is expected to be worth $1.2 trillion by 2030, with almost 10% of all cars worldwide being self-driving models. The competition is fantastic since both car manufacturers and technology companies are putting in billions to grab this possibility; consequently, the activity of deploying the first entirely autonomous cars has reached a crucial milestone at the beginning of 2026.
Tesla (TSLA) is right in the middle of this race. The electric vehicle powerhouse is about to announce its fourth-quarter 2025 financial results on Jan. 28, and Morgan Stanley analyst Andrew Percoco has identified the “path to unsupervised FSD” that Tesla holds as one of the five factors that drive the stock. The focus on investors was intensified when CEO Elon Musk made an announcement in December 2025 that Tesla was aiming to launch a completely much larger model of the FSD (full self-driving) system. Popularly referred to as FSD Gen 3, he said the new model would be implemented in either January or February 2026.
