Tesla’s Robotaxi Bet Grows Riskier Amid EV Slump
Tesla plans to use robotaxis as a solution to declining electric vehicle sales but faces significant regulatory and operational challenges. During his investor meeting this week Elon Musk announced that Tesla received approval to launch autonomous ride services in four U.S. states while planning to expand the service to reach half of the U.S. population before the end of the year. The company operates a restricted robotaxi pilot program in Austin Texas.
The regulatory body in California which is Tesla's major market has not received any permit applications from the company for operating autonomous ride services. The industry experts now doubt Tesla's ability to fulfill its ambitious timeline because of previous delays and the current challenges in the electric vehicle market.
The first half of 2025 saw Tesla vehicle sales decrease by 13% because of outdated products and CEO Musk's divisive political involvement. The company faces a challenge to maintain its $1 trillion market value because analysts predict Tesla will struggle to justify it unless it delivers near-term innovation.
The stock price dropped by more than 8% during Thursday's trading and has declined by almost 18% throughout the year. Investors require concrete autonomy advancements to compensate for deteriorating fundamental performance in the core auto operations of the company.
Dominic Maley is an American journalist recognized for his sharp and insightful reporting on social and political issues. His work is known for its depth, integrity, and the ability to highlight critical societal concerns.