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Tesla to Launch Robotaxi Trial in Austin by End of June, Says Elon Musk

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Tesla is preparing to begin its much-anticipated robotaxi pilot program in Austin, Texas, by the end of June, CEO Elon Musk confirmed in an interview with CNBC. The trial marks a significant milestone for the electric carmaker’s shift toward autonomous driving and AI-driven products.

Initially, Tesla plans to deploy about 10 self-driving vehicles in select “safest” parts of Austin, with the goal of scaling up to approximately 1,000 cars over the following months. The launch comes at a critical time for Tesla, as global sales have slowed amid growing EV competition and mounting scrutiny of Musk’s political affiliations and side ventures.

Musk emphasized that Tesla’s long-term future hinges on autonomy and its humanoid robot project, Optimus. “The only things that matter in the long term are autonomy and Optimus,” he stated, underlining the strategic pivot away from building a low-cost EV platform.

The robotaxi launch will face close examination from the U.S. National Highway Traffic Safety Administration (NHTSA), which is currently investigating incidents involving Tesla’s Full Self-Driving (FSD) software, particularly in low-visibility conditions. The regulator recently asked Tesla to detail how its robotaxis will operate in adverse weather.

Meanwhile, Musk revealed that Tesla is in licensing discussions with major automakers interested in using its FSD software — a potential revenue stream that could help commercialize the robotaxi platform faster.

Beyond Tesla, Musk’s AI startup xAI is also making headlines. The company is expanding a massive supercomputer cluster named “Colossus” in Memphis, Tennessee, which will feature one million of Nvidia’s Blackwell chips — part of a broader plan to train advanced AI models. xAI recently acquired a 1-million-square-foot property in Memphis to support the buildout.

While a merger between Tesla and xAI is not currently planned, Musk did not rule it out entirely, stating it would require shareholder approval if it were to move forward.

Amazon’s Zoox Issues Software Recall After Self-Driving Robotaxi Crash in Las Vegas

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Zoox, the self-driving vehicle subsidiary of Amazon, has agreed to recall 270 autonomous vehicles following an April 8 crash in Las Vegas involving one of its unoccupied robotaxis and a passenger car. No injuries were reported, but the incident prompted a temporary suspension of operations and a subsequent software update to correct the issue.

According to Zoox, the crash occurred when the robotaxi misjudged a perpendicular vehicle’s behavior, incorrectly anticipating that the oncoming car would continue moving. Instead, the car stopped and yielded, but the Zoox vehicle had already slowed and shifted right, leading to a collision despite hard braking.

The company identified that the issue arises when its vehicles travel at over 40 mph (64 km/h) and encounter vehicles that slowly encroach from perpendicular driveways. The system’s failure to accurately predict the yielding vehicle’s stop was the root cause of the incident.

Zoox has since rolled out a software fix to prevent similar errors and stated that the vehicle behavior has been addressed. This marks the second recall in recent months: in April, the National Highway Traffic Safety Administration (NHTSA) closed a probe into 258 Zoox vehicles following two rear-end collisions caused by unexpected braking, after Zoox issued a software update.

However, Zoox remains under NHTSA scrutiny. The agency is still investigating the company’s 2022 self-certification of a robotaxi without traditional controls, such as a steering wheel or pedals.

The incident underscores ongoing regulatory and technical hurdles faced by autonomous vehicle developers as they approach broader deployment.

Tesla Recalls Nearly All Cybertrucks Due to Detaching Trim Panel

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Tesla has issued a recall for over 46,000 Cybertrucks in the United States due to a potential safety issue involving the vehicle’s exterior trim panel. The recall affects vehicles built between November 2023 and February 27, 2024, marking the eighth recall for the Cybertruck since January 2024.

The issue arises from the stainless-steel trim panel, which could detach while driving, posing a road hazard and increasing the risk of a crash. Although Tesla has received 151 warranty claims potentially linked to this problem, no accidents or injuries have been reported. The company stated that the noise from the detached panel or its complete detachment could be noticed by drivers or passersby.

This recall affects a significant portion of Cybertruck vehicles on the road, with analyst estimates suggesting that the recalled units represent the vast majority of the truck’s current fleet. The recall could be a setback for Tesla, which has already faced challenges in 2024, including increasing competition, an aging vehicle lineup, and backlash against CEO Elon Musk’s influence over federal budget cuts.

Demand for the Cybertruck had already declined toward the end of 2023 following multiple delays, and sales of the vehicle remain a small fraction of Tesla’s overall deliveries. In 2024, Tesla’s total vehicle shipments reached 1.79 million.

Sam Fiorani, Vice President at AutoForecast Solutions, noted that the recall highlights ongoing quality issues for Tesla, which had previously avoided such setbacks. “Reputations take a long time to build and can be tarnished very quickly,” he added.

Despite the recall, Tesla’s stock showed a slight increase on Thursday. During a livestreamed “all hands” meeting, Musk did not address the recall but emphasized the Cybertruck’s “five-star safety rating,” suggesting that investors hold onto their shares.