Tesla stock posted modest gains after Elon Musk's EV maker finally launched its robotaxi service in Austin, Texas to a small group of users on Sunday.

Analysts said the "low-key" robotaxi launch highlights Tesla's big bid to compete with existing self-driving taxi operators in the US and China, as the sector grows. Musk congratulated Tesla's artificial intelligence and chip design teams on the launch in a post on X, writing that it was "culmination of a decade of hard work".

Tesla has started giving rides in driverless Model Y SUVs in Austin. Details are still sparse, but limited service is open to vetted and invited riders.