News Summary
Tesla’s newly launched autonomous robotaxi service in Austin is facing critical scrutiny after users reported erratic driving behaviors. Incidents involve robotaxis driving the wrong way and abrupt stops in traffic. While the National Highway Traffic Safety Administration is aware of these issues, Tesla’s stock rose post-launch despite these concerns. The pilot program, limited to a small group of riders, highlights challenges in achieving full autonomy as competitors advance in the robotaxi market.
Austin, Texas – Tesla’s recent launch of its autonomous robotaxi service is under scrutiny after multiple incidents involving erratic driving behaviors were reported by users. The National Highway Traffic Safety Administration (NHTSA) has reached out to Tesla regarding these concerning videos, which showed a robotaxi driving the wrong way and abruptly braking in traffic due to stationary police vehicles.
The pilot program, which commenced on Sunday, is limited to a select group of invited riders under Tesla’s “early access program.” The robotaxi fleet consists of fewer than two dozen Model Y SUVs equipped with the latest Full Self-Driving (FSD) Unsupervised software and hardware. Currently, the robotaxis operate during the day and only in favorable weather conditions, with a human safety supervisor always present in the vehicle.
While the NHTSA confirmed its awareness of the incidents, an agency spokesperson noted that they do not pre-approve vehicle technologies. Instead, they ensure that automakers comply with federal safety standards and investigate incidents that may hint at potential safety defects. Tesla’s Vice President of Vehicle Engineering and regulatory counsel did not respond to requests for comment concerning these ongoing evaluations.
The safety agency is also actively investigating Tesla’s Full Self-Driving Beta systems due to earlier safety concerns. The issues surrounding the Austin robotaxi service have highlighted the challenges the company faces in developing fully autonomous vehicles—a milestone that CEO Elon Musk had previously projected as achievable by 2015, with a goal of one million robotaxi-ready vehicles by 2020. These promises have not matured as expected, leading some to view the rollout as modest compared to competitors.
One of the main points of contention is the mixed reviews from users during the robotaxi’s initial launch. Some riders reported successful navigation experiences, while others described their frustrations with the vehicle’s performance, including instances where the robotaxi passed its intended destination multiple times. The service currently charges $4.20 per ride, a figure favored by Musk for its symbolic ties.
Amidst the issues encountered, Tesla’s stock experienced an 8% rise on Monday after the robotaxi launch, suggesting that investor sentiment remains optimistic despite the reported problems. Nevertheless, Tesla faces significant competition, particularly from established services like Waymo’s, which recently celebrated surpassing 10 million paid trips. In contrast, Tesla’s robotaxi initiative appears limited, with the company yet to expand its service to other cities, intensifying the pressure to catch up to market rivals.
Other robotaxi operations, like the collaboration between Uber and Waymo, have already been successfully functioning in Austin since March. With various companies successfully rolling out commercial robotaxi fleets, Tesla’s cautious approach raises questions about its ability to achieve full autonomy and financial viability in the evolving transportation landscape.
In summary, while Tesla’s robotaxi launch in Austin marks a significant step toward autonomous transportation, it faces scrutiny due to safety concerns and mixed user experiences. Analysts are closely monitoring its development, with its impact on the company’s financial future still uncertain.
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Additional Resources
- Engadget
- Wikipedia: Tesla, Inc.
- CNBC
- Google Search: Tesla robotaxi service
- New York Times
- Google Scholar: Tesla autonomous vehicles
- Time
- Encyclopedia Britannica: Autonomous vehicles
- Reuters
- Google News: Tesla robotaxi

Author: STAFF HERE AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.


