Federal regulators question Tesla's safety for driverless taxis ahead of Austin launch, Musk remains confident
From Yahoo Finance: 2025-05-15 23:31:00
Federal regulators are questioning Tesla on the safety of its driverless taxis in challenging conditions ahead of a robotaxi launch in Austin. The NHTSA wants details on handling low-visibility situations. CEO Elon Musk remains confident in the launch, aiming for “millions of robotaxis” by year-end.
Tesla’s intensive testing in Austin includes approximately 300 operators evaluating self-driving software. The company has been accumulating critical miles and testing its robotaxi app for a targeted June 1 launch. Industry veterans remain skeptical of Tesla’s readiness, questioning the Cybercab concept’s safety features.
Tesla’s stock has risen 45% since Musk focused on the company, but remains down 17% year-to-date. With first-quarter profits down 71%, the success of the robotaxi initiative is critical to justifying Tesla’s valuation. Former Waymo CEO John Krafcik doubts Tesla’s readiness, emphasizing the importance of safety in a serious robotaxi.