Finally, Tesla launches robotaxi facing major hurdles

Tue Jun 24 2025
Lucy Harlow (4146 articles)
Finally, Tesla launches robotaxi facing major hurdles

Tesla initiates a robotaxi pilot program in Texas, encountering significant challenges on the path to widespread deployment. The electric-vehicle manufacturer launched its inaugural fleet of autonomous taxis in Austin, Texas, on Sunday, marking a controlled trial of meticulously overseen Model Y vehicles. The company now confronts the significant task of implementing CEO Elon Musk’s goal to enhance the software and deploy it across millions of Teslas in the coming year. A swift expansion of this nature will present significant challenges, as indicated by approximately a dozen industry analysts and experts in autonomous-vehicle technology who spoke to Reuters. Observers articulated various perspectives regarding Tesla’s future, yet all advised caution against presuming an expedited rollout of robotaxis.

Some highlighted potential advantages that Tesla could leverage to surpass competitors such as Alphabet’s Waymo and various Chinese automotive and technology firms. Tesla possesses significant mass-manufacturing capabilities and has been at the forefront of implementing remote software updates, which it utilizes for enhancements in self-driving technology. The automaker refrains from employing sensors like radar and lidar, which are utilized by Waymo and many competitors; rather, it relies exclusively on cameras and artificial intelligence.

Musk unveils the rollout strategy for Tesla’s robotaxi: What it entails and its operational mechanics.
“A rollout has the potential to be expedited significantly.” “If the software works, Tesla robotaxi could drive any road in the world,” stated Seth Goldstein, a senior equity analyst at Morningstar, while noting that Tesla is still “testing the product.” Tesla initiated a meticulously planned experiment in Austin, featuring approximately a dozen vehicles operating within a confined area. This operation included safety monitors positioned in the front passenger seat, remote teleoperators, strategies to circumvent adverse weather conditions, and selected pro-Tesla influencers as passengers.

For years, Musk has asserted that Tesla would imminently launch its own autonomous ride-hailing service and transform any Tesla, whether new or used, into a revenue-generating robotaxi for its customers. Bryant Walker Smith, a law professor at the University of South Carolina specializing in autonomous-driving regulation, stated that it will be “orders of magnitude” more difficult than testing in Austin. “It’s akin to proclaiming, ‘I’m embarking on a journey to Mars’ and subsequently finding oneself in Cleveland,” Smith remarked.

Musk has asserted that Tesla will reach Mars, in that metaphor, quite swiftly: “I predict that there will be millions of Teslas operating fully autonomously in the second half of next year,” he stated in April. Musk and Tesla declined to provide comments when approached for a response. Tesla shares concluded the trading session with an increase of 8.2 per cent, closing at $348.68 on Monday, driven by investor enthusiasm surrounding the robotaxi launch.

According to Philip Koopman, a professor of computer engineering at Carnegie Mellon University and an expert in autonomous technology, Tesla’s reliance on AI presents a significant challenge in training robotaxis to navigate intricate traffic “edge cases.” The timeline for that could extend over several years. “Consider the duration of Waymo’s development.” Koopman inquired. “There is no basis for assuming that Tesla will exhibit any increased speed.”

Waymo’s endeavors in autonomous driving trace back to 2009, when Google initiated its self-driving car initiative. A prototype resembling an egg shape embarked on its inaugural journey on public streets in 2015, also in Austin. Waymo has since embarked on the establishment of a fleet comprising 1,500 robotaxis in designated urban areas. A spokesperson for Waymo indicated that the company intends to increase its fleet by an additional 2,000 vehicles by the conclusion of 2026.

Some analysts contend that Tesla may achieve a more rapid expansion, partly due to Waymo’s efforts in navigating regulatory and technical hurdles. “Waymo and other pioneers have contributed to regulatory changes and have increased awareness among riders, pedestrians, and other road users regarding autonomous vehicles,” stated Paul Miller, an analyst at market-research firm Forrester. Miller noted that Tesla’s status as a mass manufacturer provides a competitive advantage.

Waymo acquires Jaguar I-PACE SUVs and equips them with sensors and technology that surpass the cost and sophistication of those integrated into Tesla vehicles. Waymo refrained from providing any commentary regarding the potential for Tesla’s robotaxi expansion. The skepticism of the company’s former CEO, John Krafcik, persists. Krafcik noted that the precautions Tesla implemented in Austin indicate a lack of confidence in the safety of its technology when deployed at scale. “And they shouldn’t,” he stated. “It lacks the necessary safety measures and significantly falls short of the comprehensive strategy and thoroughly documented safety protocols that Waymo has exhibited.”

Some analysts indicated that Tesla’s aggressive strategy might inadvertently hinder its advancement and that of the autonomous-vehicle sector, particularly if it erodes public trust. Tesla has a history of encountering legal and regulatory challenges related to its Full Self-Driving (FSD) driver-assistance system, which does not achieve full autonomy. In a recent federal safety investigation concerning Tesla, authorities are scrutinizing the influence of FSD in accidents, “some fatal,” that occur in conditions such as rain or other adverse weather that disrupt the functionality of the system’s cameras. Prior to the Austin test, Musk announced on his social-media platform, X, that the technology behind the robotaxis would not significantly differ from any Tesla, apart from a software update: “These are unmodified Tesla cars coming straight from the factory, meaning that every Tesla,” he wrote, “is capable of unsupervised self-driving!”

The automaker extended invitations to influencers who are favorable towards Tesla to participate in its inaugural robotaxi rides, and the feedback was predominantly positive regarding the experience. A social-media video shared by a robotaxi passenger depicted the vehicle navigating a four-lane intersection with a traffic light, entering the incorrect lane for approximately six seconds. There was an absence of oncoming traffic in the lane at that moment.

“Clearly, we find ourselves on the incorrect side of the double-yellow line,” remarked the passenger, Rob Maurer, in a video narration of the experience he shared on X, emphasizing that he felt secure despite the car behind him honking at the “confusing maneuver.” Maurer did not provide a response to inquiries for comment. Reuters confirmed the video’s location by correlating the surrounding structures, businesses, and street signage with the intersection of West Riverside Drive and Barton Springs Road in Austin.

A Reuters witness observed a Tesla robotaxi operating at speeds ranging from 40 to 45 mph in a 35 mph zone on First Street, near the Texas School for the Deaf. A notice cautioned to be vigilant for pedestrians with hearing impairments.

Lucy Harlow

Lucy Harlow

Lucy Harlow is a senior Correspondent who has been reporting about Equities, Commodities, Currencies, Bonds etc across the globe for last 10 years. She reports from New York and tracks daily movement of various indices across the Globe

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