Tesla Shares Skid After Stumbling Robotaxi Debut in Austin
Tesla’s latest foray into autonomous mobility has run into a wall of scepticism, wiping billions from the company’s market value just days after its highly publicised robotaxi launch.
The electric-vehicle maker introduced a fleet of driverless Model Y robotaxis in downtown Austin last week, touting the rollout as a milestone for fully autonomous ride-hailing. Initial fanfare briefly lifted Tesla’s share price, but that momentum evaporated as footage surfaced showing the cars lurching across lanes, rolling through intersections and repeatedly braking near police vehicles. Online clips also revealed that every vehicle still carries a human “safety monitor,” a detail that surprised investors who had expected a completely driver-free demonstration.
By Tuesday’s close, Tesla stock had plunged more than four percent, erasing roughly US $75 billion in market capitalisation. The drop coincided with confirmation from the National Highway Traffic Safety Administration that it is reviewing the viral videos to assess potential safety violations. Analysts noted that regulatory attention so early in the programme could delay Tesla’s broader autonomous ambitions.
Investor confidence was also dented by the revelation that remote operators can intervene in the fleet, raising questions about the system’s readiness and profitability. Market watchers said the presence of backup drivers undermines key assumptions in Tesla’s long-term valuation, which relies heavily on high-margin robotaxi revenue.
The bumpy rollout comes at a time when competitors are expanding more smoothly. Alphabet-backed Waymo recently announced plans to extend its driverless ride-hailing service to additional U.S. cities after completing millions of fully autonomous kilometres without human chaperones. Industry observers suggested that Tesla now faces a steeper climb to prove its technology can match, let alone surpass, such performance.
Despite the setback, Tesla has not indicated any change to its roadmap for scaling the robotaxi fleet. Engineers are reportedly analysing incident data from the Austin trials, while the company continues to lobby state officials for wider deployment approvals.
Investors will look for reassurance at Tesla’s upcoming earnings call, where attention is likely to focus on how quickly the company can rectify technical missteps and restore confidence in its autonomous strategy. Until then, market volatility may persist as traders weigh the promise of a driverless future against the reality of a rocky present.
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