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Tesla Moves to Block Austin from Releasing Robotaxi Records

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Tesla is attempting to stop the city of Austin, Texas, from disclosing public records to Reuters regarding its upcoming launch of self-driving robotaxis, expected to begin operating on Austin’s streets this month. The electric vehicle maker argues that releasing the documents would expose confidential business information and damage its competitive position.

Reuters submitted a public records request in February, seeking communications between Tesla and Austin officials over the prior two years. This request came after Tesla CEO Elon Musk’s January announcement that the company would soon introduce fare-collecting robotaxis in Austin.

In early April, Austin’s public-information officer Dan Davis informed Reuters that certain “third parties” had asked the city to withhold the requested records, citing privacy and proprietary concerns. The city then referred the matter to the Texas Attorney General’s office on April 7, as state law requires when disputes arise over the release of potentially confidential information.

On April 16, a Tesla attorney sent a letter to the Attorney General, objecting to the release of what it described as “confidential, proprietary, competitively sensitive commercial, and/or trade secret information.” Tesla argued that public disclosure of these communications would expose its deployment procedures, strategy, and operational status, potentially causing the company “irreparable harm.”

Tesla and the Texas Attorney General’s office have declined to comment further. Austin city officials emphasized that they take no stance on whether the materials qualify as proprietary, but are obligated by law to seek the Attorney General’s judgment when a third party claims confidentiality.

Musk has made self-driving technology central to Tesla’s future growth. While the company has repeatedly delayed full autonomy, the robotaxi launch in Austin is being closely monitored by investors and regulators as a potential breakthrough moment. Many analysts believe Tesla’s high market valuation depends largely on the commercial success of its robotaxis and humanoid robots.

Details of Tesla’s Austin robotaxi program remain limited. The company has only revealed plans to initially deploy between 10 and 20 autonomous vehicles in certain, undisclosed areas of Austin.

In response to Tesla’s objections, a Reuters attorney argued on April 23 that the public has a right to transparency, especially when Tesla plans to operate untested autonomous vehicles on public roads. “Tesla’s deployment of the unproven technology on Texas roadways makes its plans an issue of enormous importance to Texas and the public at large,” the attorney wrote.

The Texas Attorney General’s office is expected to issue a ruling within 45 business days, a deadline that arrives next week.

Tesla’s Optimus Humanoid Robot Program Chief Milan Kovac Resigns

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Milan Kovac, head of Tesla’s Optimus humanoid robot program, announced his departure from the company in a post on X on Friday, citing personal reasons for the decision. Kovac, who took charge of the program in 2022 as director of Optimus and Autopilot Engineering and was promoted to vice president in 2023, stated that his decision was driven solely by the need to spend more time with his family abroad.

“I’ve been far away from home for too long, and will need to spend more time with family abroad. I want to make it clear that this is the only reason,” Kovac said on social media.

According to Bloomberg News, which first reported the news, Kovac will leave his position immediately. Leadership of the Optimus program will now transition to Ashok Elluswamy, who currently heads Tesla’s Autopilot division. Neither Tesla nor Elluswamy have publicly commented on the leadership change.

Tesla CEO Elon Musk has previously emphasized the central role that the Optimus robot and full autonomy play in the company’s long-term future. “The only things that matter in the long term are autonomy and Optimus,” Musk told CNBC in May.

Musk has stated that Tesla aims to produce thousands of Optimus robots this year, though the project has faced supply chain obstacles. In April, Musk noted that China’s export restrictions on rare-earth magnets had affected production of the humanoid robots.

Tesla has increasingly focused its business strategy on autonomous technology, including both the Optimus robots and the company’s anticipated robotaxi service. Much of Tesla’s future valuation, Musk has indicated, is tied to the success of these initiatives.

Trump-Musk Rift Raises Regulatory Risks for Elon Musk’s Business Empire

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Elon Musk’s deteriorating political relationship with former President Donald Trump may expose his vast business empire to heightened regulatory scrutiny across multiple U.S. agencies. As political tensions escalate, the risk that regulators may more aggressively oversee Musk’s various companies has become a growing concern. Below is an overview of the key U.S. regulators with authority over Musk’s enterprises, and the potential challenges ahead:

Federal Communications Commission (FCC)
The FCC oversees the allocation of spectrum critical to SpaceX’s Starlink satellite internet service. In April, the FCC launched a review of its longstanding spectrum sharing rules, potentially affecting SpaceX’s access to expanded frequencies necessary to enhance its coverage. While the review aims to modernize spectrum usage, it may also result in stricter rules or delays for SpaceX, depending on the political climate and regulatory stance.

Food and Drug Administration (FDA)
The FDA regulates clinical trials for Neuralink, Musk’s brain implant company. While Neuralink has secured FDA approval for initial human trials, earlier safety concerns cited by the agency in 2023 remain relevant as trials progress. Any missteps or adverse events in ongoing studies could prompt the FDA to halt or delay the company’s development timeline.

Environmental Protection Agency (EPA)
SpaceX’s Starbase launch facility in Texas falls under the EPA’s jurisdiction for environmental compliance, particularly regarding wastewater discharge and environmental impact assessments under the National Environmental Policy Act. Rocket launches and tests, which have included multiple explosions, may invite further scrutiny, particularly if environmental groups or political adversaries exert pressure on federal agencies.

National Highway Traffic Safety Administration (NHTSA)
Tesla’s Full Self-Driving (FSD) technology remains under active investigation by NHTSA, especially regarding its performance under poor visibility conditions. The agency recently requested detailed information on Tesla’s robotaxi service set to launch in Austin, Texas, this month. Any regulatory findings could impact Tesla’s ability to scale its self-driving services.

Federal Aviation Administration (FAA)
The FAA proposed a $633,000 fine against SpaceX last year for license violations during launches. With ongoing investigations and the potential for future launch failures, the FAA holds significant leverage over SpaceX’s launch schedule and licensing requirements.

Securities and Exchange Commission (SEC)
Musk continues to face legal battles with the SEC, including litigation related to his 2022 acquisition of Twitter (now X). The regulator is also reportedly investigating Neuralink, raising additional legal exposure. Any adverse findings could impact Musk personally as well as his companies’ access to capital markets.

Federal Trade Commission (FTC)
The FTC oversees data privacy and antitrust compliance for social media platforms, including X. The agency is currently investigating whether certain media watchdog groups coordinated advertiser boycotts of X, a situation Musk claims is anti-competitive. The FTC’s broader mandate to protect consumer privacy could result in further investigations, particularly regarding data protection for minors.

Political Climate Raises Stakes
While these agencies have long held authority over Musk’s operations, his prior friendly ties to Trump may have provided a degree of political insulation. The recent breakdown in their relationship removes that buffer, potentially leaving Musk more exposed to adversarial regulatory action depending on future election outcomes and shifting political alliances.

With businesses spanning electric vehicles, space exploration, telecommunications, brain-computer interfaces, and social media, Musk’s cross-sector reach makes him uniquely vulnerable to regulatory actions from multiple federal agencies simultaneously.