Federal regulators are pressing Tesla Inc. for details on how its driverless taxis will operate safely in challenging conditions. This comes as the electric vehicle maker prepares for a pivotal robotaxi launch in Austin next month.
What Happened
The National Highway Traffic Safety Administration (NHTSA) has requested information on how Tesla’s autonomous vehicles will handle fog, sun glare, rain, and other low-visibility situations linked to previous accidents involving the company’s driver-assistance software.
Tesla’s Response
CEO Elon Musk has reassured investors that the Austin launch will proceed as planned, laying the groundwork for “millions of robotaxis” nationwide by year-end. During an April earnings call, Musk asked, “Can you go to sleep in our cars and wake up at your destination?” He expressed confidence that this feature will be available in many cities in the U.S. by the end of this year.
Intensive Testing in Austin
The federal inquiry comes amid Tesla’s intensive “Project Rodeo” testing in Austin. Approximately 300 operators have been secretly evaluating prototype self-driving software. The company has been accumulating “critical miles,” conducting training with local first responders, and testing its robotaxi app ahead of a targeted June 1 launch.
Industry Skepticism
Industry veterans remain skeptical of Tesla’s readiness. Former Waymo CEO John Krafcik publicly questioned whether the company’s Cybercab concept incorporates necessary safety features, stating that a “serious robotaxi would demonstrate the primacy of safety.”
Tesla’s Stock Performance
Tesla’s stock has risen 45% since Musk announced he was stepping back from his role in President Donald Trump’s administration to focus on the company. However, shares remain down 17% year-to-date. With first-quarter profits down 71%, the success of the robotaxi initiative has become increasingly critical to justify Tesla’s valuation.
Key Takeaways
- Federal regulators are examining Tesla’s robotaxi ambitions amid safety concerns
- Tesla is preparing for a robotaxi launch in Austin next month
- The company aims to launch “millions of robotaxis” nationwide by year-end
- Industry veterans are skeptical of Tesla’s readiness and question the safety of its Cybercab concept
- Tesla’s stock performance is closely tied to the success of its robotaxi initiative