Under pressure from declining sales and reputation challenges, Tesla's CEO Elon Musk has announced the company will launch its autonomous taxi service, Robotaxi, by June 2025 as a strategic key to reverse these issues. During the 2025 Q1 earnings call, Tesla confirmed plans to roll out its Robotaxi service, built on its Full Self-Driving (FSD) system, with internal deadlines set for early June. However, insiders suggest this deadline serves more as motivation to achieve results by June's end.
Currently, Tesla has 300 test drivers in Austin using vehicles equipped with FSD software to accumulate crucial mileage. Similar tests are underway in San Francisco, New York, Atlanta, Seattle, and Phoenix. Beyond vehicle testing, Tesla collaborates with local emergency response teams for simulations to ensure readiness for unexpected events.
Although Musk envisions a fully driverless Robotaxi service, reports indicate remote operators might be used as a safety backup. While the Robotaxi isn't completely autonomous, its launch marks a significant milestone in automotive technology. Success could revolutionize urban transport and fuel Tesla’s growth.
Despite the excitement, market reactions remain lukewarm, partly due to Musk’s history of unmet promises, shaking investor confidence. Tesla's net income plunged 71%, vehicle sales dropped 20%, and deliveries hit a three-year low. Trade tariffs have also escalated supply chain costs, challenging Tesla's localization and global competitiveness. Musk's personal wealth has taken a hit, with Tesla shares down over 40% as of 2025.
Amid scrutiny, Musk recently exited his advisory role with the “Department of Government Efficiency” to focus on Tesla. The company will prioritize the development of the Optimus humanoid robot and invest in supply chain and AI platform enhancements.
