The US National Highway Traffic Safety Administration (NHTSA) has reached out to Tesla after videos surfaced online appearing to show the company’s newly launched driverless vehicles exhibiting erratic behavior on public roads in Austin, Texas.
Tesla debuted its long-anticipated robotaxi service over the weekend with a limited rollout involving 12 autonomous vehicles. While the launch was low-key—limited to invited analysts, influencers, and shareholders—footage posted on social media raised questions about the technology’s readiness for real-world conditions. Several videos appear to show the vehicles making abrupt stops, swerving into incorrect lanes, and speeding.
The NHTSA confirmed in a statement that it is “aware of the referenced incidents and is in contact with the manufacturer to gather additional information.” The agency reiterated that it does not pre-approve new vehicle technologies but investigates potential safety defects once a product is in use.
Tesla has not commented publicly on the regulator’s inquiry. However, the company noted that the robotaxis are being deployed with restrictions: they do not operate in poor weather, avoid complex intersections, and are not permitted to carry passengers under the age of 18. Each vehicle also includes a safety driver—seated in the passenger seat during initial rides.
Despite the modest scale of the launch, the announcement significantly boosted Tesla’s stock, which rose 8% on Monday, contributing to a $19 billion increase in CEO Elon Musk’s net worth. The company charged $4.20 per ride during the test phase.
Musk described the robotaxi debut as the “culmination of a decade of hard work” by Tesla’s artificial intelligence and chip design teams. Unlike competitors such as Waymo and Zoox, which use lidar and radar technology for autonomous navigation, Tesla’s system relies solely on in-car cameras and AI to interpret driving environments—a choice that continues to spark debate over its safety and reliability.
While some investors responded enthusiastically, others remain cautious. UBS analysts raised their price target on Tesla stock while maintaining a “Sell” rating, warning that current market enthusiasm may already overestimate the commercial viability of Tesla’s autonomous fleet.
Analysts also point out that competitors have logged millions of autonomous miles in cities like San Francisco, Phoenix, and internationally in regions such as China, Singapore, and the UAE. Tesla’s camera-based system, still under development, faces scrutiny not only for safety concerns but for its technological divergence from the broader industry standard.
With input from BBC and Business Insider.
