Overview

• Tesla launched its pilot robotaxi service in Austin on June 22 using about 10 geofenced Model Y vehicles with a human safety monitor in each front passenger seat.
• Social media videos captured incidents of robotaxis driving on the wrong side of the road, speeding beyond posted limits and sudden braking in regular traffic.
• The National Highway Traffic Safety Administration has opened an investigation into the robotaxi service and is gathering information directly from Tesla.
• Tesla’s share price initially rose by about 8% on launch day, then fell nearly 3% following reports of the NHTSA inquiry.
• Tesla’s camera-and-AI-based approach contrasts with Waymo’s lidar and radar-equipped fleet, which has completed over 10 million paid rides in multiple cities.