Tesla's Robotaxi Plans Under Federal Scrutiny Ahead Ff Austin Launch As Elon Musk Vows Nationwide Rollout By Year-End

Federal regulators are pressing Tesla Inc. TSLA for details on how its driverless taxis will operate safely in challenging conditions as the electric vehicle maker prepares for a pivotal robotaxi launch in Austin next month.

What Happened: The National Highway Traffic Safety Administration (NHTSA) has requested information on how Tesla’s autonomous vehicles will handle fog, sun glare, rain, and other low-visibility situations linked to previous accidents involving the company’s driver-assistance software, according to a nine-page letter, according to an Associated Press report on Wednesday.

CEO Elon Musk has reassured investors the Austin launch will proceed as planned, laying the groundwork for “millions of robotaxis” nationwide by year-end. “Can you go to sleep in our cars and wake up at your destination?”

Musk asked during an April earnings call. “I’m confident that will be available in many cities in the U.S. by the end of this year.”

The federal inquiry comes amid Tesla’s intensive “Project Rodeo” testing in Austin, where approximately 300 operators have been secretly evaluating prototype self-driving software, Business Insider reported.

See Also: Elon Musk Says Mohammed Bin Salman And Trump Were ‘Impressed’ With Tesla Optimus As The Humanoid Robot Danced To ‘YMCA’

Why It Matters: The company has been accumulating “critical miles,” conducting training with local first responders, and testing its robotaxi app ahead of a targeted June 1 launch.

Industry veterans remain skeptical of Tesla’s readiness. Former Waymo CEO John Krafcik publicly questioned whether the company’s Cybercab concept incorporates necessary safety features, stating a “serious robotaxi would demonstrate the primacy of safety.”

Tesla’s stock has risen 45% since Musk announced he was stepping back from his role in President Donald Trump‘s administration to focus on the company, though shares remain down 17% year-to-date. With first-quarter profits down 71%, the success of the robotaxi initiative has become increasingly critical to justify Tesla’s valuation.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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