Tesla shares are on track for their strongest week since May, driven by a series of developments concerning the EV maker’s robotaxi business that have bolstered investor sentiment. The stock surged approximately 5%, representing Tesla’s most significant weekly increase since early May. The rebound follows investor concerns regarding diminishing auto profits, substantial expenditures on AI, and the speed of its robotaxi rollout.

However, this week investors experienced a measure of relief following a report from The Information indicating that the electric vehicle manufacturer is gearing up for an August launch of its Cybercab, a robotaxi designed without a steering wheel. Autonomous robotaxi rides are presently available in select regions of Miami, Orlando, and Tampa in Florida, as well as in Austin, Dallas, and Houston in Texas. Tesla received another boost this week following the approval of its application to operate an autonomous vehicle network in Clark County by the Nevada Transportation Authority commissioners, an area that includes Las Vegas.

Just last month, Tesla reported earnings for the quarter that fell short of expectations, despite revenue exceeding estimates. The EV maker anticipates its capital expenditure to exceed $25 billion for the current year. Additionally, Tesla benefited from its substantial bitcoin holdings, with the cryptocurrency on track for a weekly increase of 23%.