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Tesla’s Robotaxi Rollout in Texas Raises Concerns Over Safety and Regulation

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Elon Musk announced in late January that Tesla plans to launch its autonomous ride-hailing service, which he refers to as “robotaxis,” by June in Austin, Texas. This announcement has raised questions regarding Tesla’s willingness to push unproven driverless technology onto public streets, especially in a state with minimal regulatory oversight.

Tesla has been criticized for accidents involving its driver-assistance systems, Autopilot and Full Self-Driving (FSD), blaming customers for accidents while advising them to remain ready to take control of the vehicle. With this new initiative, Musk aims to deploy fully autonomous taxis, putting the company directly in the line of responsibility for any crashes, according to legal experts.

Despite years of promises about fully self-driving vehicles, Tesla has failed to deliver. Musk has set a goal to launch these autonomous taxis in Texas, a state with almost no regulatory control over autonomous vehicles. Texas law allows companies to operate driverless cars on public roads as long as they are registered, insured, and equipped to record crash data, without needing approval from a state agency.

Musk’s Tesla headquarters relocation to Austin in late 2021 was partly motivated by Texas’s hands-off regulatory approach, a stance that aligns with Musk’s broader political views. Critics, including legal experts, believe that Texas’s lack of oversight could allow Tesla to bypass important safety and testing procedures, potentially endangering public safety. Unlike in California, where companies like Waymo and Cruise have had to log millions of miles under strict regulations to gain approval for paid robotaxi services, Tesla’s approach will likely face far fewer hurdles.

Despite promising an unsupervised version of FSD in 2023, Tesla has logged just 562 miles of testing in California, far fewer than other autonomous vehicle companies. Even so, Musk’s plans for June have left investors and experts guessing. Musk’s promise of a fully autonomous ride-hailing system lacks details about scale, availability, or how it will function in practice.

Legal experts also believe that Tesla may begin with limited tests in Austin, potentially in controlled areas with human intervention via remote control to prevent accidents. However, residents in Austin have already raised concerns about safety, citing multiple near-miss incidents involving other robotaxis on the streets. Local authorities have also struggled with enforcement, as Texas law allows driverless vehicles to operate with limited oversight, leaving cities like Austin feeling powerless.

Mobileye Predicts Lower 2025 Revenue Amid China Market Challenges

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Mobileye has forecast lower-than-expected revenue for 2025, citing continued weakness in the Chinese market due to increasing competition from local self-driving technology providers. The company expects revenue between $1.69 billion and $1.81 billion, falling short of the $1.94 billion analyst consensus from LSEG data.

Chinese manufacturers have been developing their own advanced driver-assistance systems (ADAS) at lower costs, limiting Mobileye’s shipments to the region. In December, the company noted that its major automotive customers were losing market share in China as local automakers ramped up production of more affordable electric vehicles (EVs).

While shipment volumes of Mobileye’s EyeQ chips in China have improved compared to 2024, they remain sluggish, executives stated in a post-earnings call on Thursday. The recent reintroduction of Chinese government EV subsidies could stimulate demand, but the impact remains uncertain.

Despite these challenges, Mobileye reported fourth-quarter revenue of $490 million, surpassing the $477.8 million estimate but marking a 23% decline from the previous year. The drop was attributed to lower demand for its EyeQ chips as automakers continue to work through excess inventory.

Looking ahead, Mobileye remains optimistic about 2025, stating that its ongoing tests with potential customers for its assisted driving technology “will bear fruit” next year. The company also dismissed concerns that legacy automakers will fully develop their own in-house driver assistance systems, as many are reassessing their EV strategies amid slowing demand.

On an adjusted basis, Mobileye posted earnings of 13 cents per share in the fourth quarter, exceeding estimates of 11 cents. However, gross profit declined by 30% during the same period.

 

Waymo to Expand Autonomous Driving Tests to Over 10 New Cities

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Alphabet’s self-driving unit, Waymo, announced plans on Wednesday to expand its autonomous driving technology testing to over 10 new cities in 2025. Following successful trials of its Waymo Driver in various locations, the company is now preparing to test its technology in additional urban environments, including San Diego and Las Vegas, among other cities to be revealed later.

Waymo has already conducted trials in regions such as Truckee, Michigan’s Upper Peninsula, Upstate New York, and Tokyo, and reports that its technology has successfully adapted to these diverse settings. The new expansion will involve a limited fleet of vehicles, with trained human specialists behind the wheel at all times. Testing will begin with manual driving through the most complex areas of each city, such as city centers and freeways.

Initially, fewer than 10 vehicles will be deployed to each location, where they will be manually driven for a few months to evaluate the technology’s performance. This marks a strategic move as Waymo aims to strengthen its autonomous ride-hailing services, having already expanded to Miami, Florida, in December. The company is under close scrutiny from safety regulators, following several incidents involving autonomous driving technology.

In October, Waymo closed a $5.6 billion funding round led by its parent company, Google, as part of its efforts to scale its autonomous services in an increasingly competitive market.