Tesla's Robotaxis Trigger Federal Scrutiny After Chaotic Austin Launch

Tesla's Austin robotaxis caught on video driving erratically; NHTSA now investigating.

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14 hours ago
Summary
  • Despite a stock rally, rollout highlights years of missed autonomy promises by Musk.
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Tesla's (TSLA, Financials) highly anticipated robotaxi rollout in Austin, Texas, has drawn the attention of U.S. safety regulators after multiple videos circulated online showing the autonomous vehicles behaving erratically on public roads.

The National Highway Traffic Safety Administration confirmed Monday that it is in contact with Tesla to gather information after robotaxis were seen driving the wrong way, slamming on brakes unexpectedly, and reacting to parked police vehicles without cause.

Tesla launched the limited pilot program over the weekend, deploying 10 to 20 Model Y vehicles outfitted with its latest Full Self-Driving “Unsupervised” system. The cars currently include a human valet in the front passenger seat and operate only in favorable daylight conditions. The service is invite-only, primarily offered to Tesla supporters.

Despite the glitches, Tesla stock surged 8% on Monday as excitement over the robotaxi debut rippled through markets. However, the launch once again fell short of CEO Elon Musk's earlier promises. Musk previously claimed that Tesla would have 1 million robotaxi-ready vehicles by 2020 and fully autonomous cross-country trips by 2017—none of which materialized.

Tesla has not publicly commented on the NHTSA inquiry. The agency said it does not pre-approve vehicle technologies but may investigate potential safety defects and take further action if necessary.

Meanwhile, rivals are advancing. Alphabet's Waymo surpassed 10 million paid rides last month, while Chinese competitors Baidu, WeRide, and Pony.ai continue scaling commercial fleets.

Tesla's push into autonomy continues—but so do the growing pains.

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