Tesla stock surges 9% after robotaxi launch. What analysts are saying
Tesla’s new robotaxi service in Austin, Texas, is already making headlines—but not all for the right reasons. Just days after launching its driverless ride service, videos showing the cars behaving erratically hit social media, catching the attention of U.S. safety regulators.
What Happened?
Over the weekend, Tesla rolled out a small fleet of 10 to 20 Model Y robotaxis in Austin. These vehicles use the company’s latest self-driving technology, called FSD Unsupervised. While the cars drive themselves, a human “valet” is seated in the front passenger seat as a safety precaution.
But things didn’t go smoothly. Social media lit up with clips showing one Tesla robotaxi going the wrong way on a road, while another braked suddenly in traffic, reportedly reacting to police vehicles that weren’t even in its direct path. Other awkward and unsafe moments were caught on camera, too.
Regulators Step In
The National Highway Traffic Safety Administration (NHTSA) confirmed Monday that it’s aware of these incidents and is in touch with Tesla to get more information. While the agency doesn’t “pre-approve” technologies like FSD, it says it will investigate any signs of potential safety risks.
NHTSA has already been looking into Tesla’s FSD Beta system after a number of accidents involving the technology, including some that caused injuries or deaths. That investigation is still ongoing.
What Tesla Says (or Doesn’t)
So far, Tesla hasn’t officially commented on the incidents. Requests for a statement from key company executives, including Lars Moravy (VP of Vehicle Engineering) and Casey Blaine (Regulatory Counsel), have gone unanswered.
Inside the Austin Robotaxi Program
- The service is invitation-only for now.
- Riders are mostly Tesla fans and promoters.
- The robotaxis only operate during daylight and good weather.
- There’s always a human in the passenger seat—just in case.
A Mixed Bag for Tesla
Despite the bumpy start, the robotaxi news boosted Tesla’s stock price by 8% on Monday. Still, it’s a far cry from Elon Musk’s earlier promises. He had claimed back in 2015 that Teslas would be fully autonomous within three years. By 2019, Musk even told investors Tesla would have 1 million robotaxis on the road by 2020—each one earning income for its owner.
None of those projections came true.
Meanwhile, competitors like Waymo (owned by Alphabet) have logged over 10 million paid robotaxi rides, and Chinese firms like Baidu’s Apollo Go, WeRide, and Pony.ai are already operating commercial self-driving fleets.
Summary in Simple Terms:
Tesla’s robotaxi launch in Austin started with excitement but quickly raised red flags after videos showed some of the cars making dangerous driving decisions. Now, federal safety regulators are asking questions. While Tesla’s vision for autonomous vehicles is bold, the road to safe and reliable self-driving tech is proving to be a bumpy one.
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