Tesla (TSLA) to Launch Robotaxis in Austin Amid Regulatory, Safety Questions
Tesla (TSLA, Financials) is set to launch its first fleet of robotaxis in Austin, Texas, this month as CEO Elon Musk shifts focus from mass-market electric vehicle production to autonomous ride-hailing technology.
The rollout, involving 10 to 20 Model Y vehicles, is slated to begin tentatively on June 22, according to Musk. The announcement follows years of missed deadlines and unfulfilled self-driving promises. Tesla's Austin launch comes amid lagging EV sales and mounting investor reliance on future tech bets like robotaxis and humanoid robots to justify the company's market cap.
Tesla has released few specifics on the program, saying the vehicles will use a new version of its software but remain unmodified. There's no public information yet on ride pricing, passenger eligibility, or geographic coverage beyond Musk's comment that the robotaxis will be limited to safest parts of Austin and monitored remotely.
Texas does not currently require permits or oversight for autonomous vehicle launches. While a new statewide bill introducing authorization requirements has passed, it won't take effect until 2026.
The National Highway Traffic Safety Administration has asked Tesla to provide detailed information on the Austin rollout, including safety features, accident protocols, and operational plans. The request follows a fatal crash linked to Tesla's Full Self-Driving software, which is still under investigation.
Austin police say autonomous vehicles from competitors like Waymo and the now-suspended Cruise have struggled in dynamic environments, such as festivals and manually directed traffic zones. Tesla's system is expected to rely on remote teleoperators to step in when needed.
Experts remain skeptical. Having 10 cars on the road and not having a crash is sort of table stakes for this game, said Carnegie Mellon University's Phil Koopman, a specialist in autonomous vehicle safety.
Tesla did not comment on how many passengers will participate in the early phase or whether the company will charge for rides.
This article first appeared on GuruFocus.
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San Francisco Chronicle
34 minutes ago
- San Francisco Chronicle
If Waymos are ignited during Saturday's No Kings protest, S.F. officials could let them burn
With massive demonstrations anticipated across the Bay Area on Saturday, firefighters in San Francisco are bracing for one dramatic form of protest theater: The torching of Waymo robotaxis. Burning the driverless cars became a fraught symbol of the moment during protests in Los Angeles on Sunday and Monday, which tipped off a week of escalating tension between President Donald Trump and California's major blue cities. Photos of the charred, smoldering, graffiti-scrawled cars instantly went viral on social media, transforming a manicured Southern California boulevard into an apparent war zone. If it happens in San Francisco, Fire Chief Dean Crispen said at a recent meeting, it might be better to let the cars burn. 'In a period of civil unrest, we will not try to extinguish those fires unless they are up against a building,' Crispen told members of the San Francisco Fire Commission on Wednesday. He explained that since the electric Waymo SUVs run on lithium ion batteries, they burn 'incredibly hot' and tend to explode when ignited. Such blazes are challenging to put out, and become dangerous due to the rapidly rising temperatures of the cars' batteries, a phenomenon called 'thermal runaway,' Crispen said. These sudden spikes can lead to sporadic eruptions. Quelling a Waymo fire would require connecting to a fire hydrant and essentially tethering firefighters to a single area, in a situation where they need to be mobile and agile. Crispen's comments provided a window into how emergency responders are planning and coordinating for a series of No Kings marches and rallies that could be structured and peaceful — or devolve into violence and property damage. Waymo plans to constrain service of its Jaguar I-Pace electric vehicles this weekend, pulling the cars out of the Financial District, SoMa, the Mission and Potrero Hill, according to company staff. The robotaxis will still be available on San Francisco's west side and in other areas. Set to coincide with President Donald Trump's birthday and a military parade in Washington, D.C., No Kings Day will cap off a week of protests in Los Angeles, San Francisco and other cities, which started off as a reaction to federal immigration raids, and then widened in scope. As Trump deployed troops in Los Angeles to intimidate protesters, anger at the president intensified. Organizers of Saturday's actions have called the president a 'would-be king.' Among the most captivating images from the initial Los Angeles protests were the scorched Waymo cars, lined up in a row and engulfed in heavy black smoke. Some observers believe the cars were targeted because of their association with Big Tech. Others view the Waymos as hapless victims, because they have no one behind the wheel and easily become paralyzed if an object is placed in their path. Lighting cars on fire is a common protest tactic, Omar Wasow, an assistant professor of political science at UC Berkeley, said in a recent interview. He noted that in the past, and particularly after the murder of George Floyd in 2020, demonstrators often directed their rage at police cruisers. 'At the same time,' Wasow said. 'There are some things that are specific to a Waymo car. You can stop it easily. There's not a driver who is going to try to drive through the crowd. It's almost a sitting duck.' Still, others wonder whether the L.A. demonstrators had arranged the cars in a defensive barricade, then lit the fires knowing they would be hard to control. 'I have no doubt the protesters not only called the Waymos, but that they lined the Waymos up in a strategic and defensive position,' said William Riggs, a professor of engineering and management at the University of San Francisco who studies autonomous vehicles. Representatives of Waymo said they had no reason to believe people had deliberately hailed vehicles to a scene to be destroyed. 'Safety is our top priority, and we are taking heightened measures to keep our vehicles and riders safe including limiting our service in needed areas,' a spokesperson for the company wrote in a statement. 'We are working in close coordination with local law enforcement and fire departments.' In response to the chaos in Los Angeles, Waymo diverted service from the downtown center. Subsequently, the company limited trips in certain parts of San Francisco, where protesters gathered on Monday. Though at that time the autonomous vehicle company declined to provide details about what was evidently an evolving service plan, Waymo's self-driving fleet on Monday appeared to be largely absent from SoMa and the Mission, two areas where the cars are normally ubiquitous. Protests took place that night at the 24th and Mission BART Station plaza and outside City Hall. Crews that responded to the Waymo fires in Los Angeles mostly stood by as the cars incinerated, Crispen said. He noted that San Francisco firefighters will follow suit, while assuring that his personnel would carefully monitor the fires and heed any decisions from incident commanders.


Business Insider
an hour ago
- Business Insider
Sector Spotlight: Automakers get rare earth export license clearance from China
Welcome to the latest edition of 'Sector Spotlight,' where The Fly looks at a new industry every week and highlights its happenings. Confident Investing Starts Here: AUTO SECTOR NEWS: Tesla (TSLA) upgraded its Model S and Model X cars in the U.S. and raised the prices of all configurations of the two models by $5,000, Reuters reported. The NHTSA announced the next step in its new Automated Vehicle Framework. 'To facilitate automated driving systems technology reaching its full potential to transform roadway safety, NHTSA is streamlining its exemption process for commercial deployment of vehicles and adopting a dynamic and flexible approach to evaluating these exemptions. These improvements will allow NHTSA to process ADS and other exemptions more quickly while also allowing NHTSA to prioritize safety through a tailored and progressive operational oversight approach,' the agency said. Tesla has filed a lawsuit against former Optimus engineer Zhongjie Li, who worked at Tesla from 2022 to 2024, accusing him of stealing humanoid robot information and setting up a rival startup, Bloomberg's Dana Hull wrote. 'Less than a week after he left Tesla, Proception was incorporated,' according to the complaint. 'And within just five months, Proception publicly claimed to have 'successfully built' advanced humanoid robotic hands — hands that bear a striking resemblance to the designs Li worked on at Tesla.' President Trump received a phone call from Tesla CEO Elon Musk late on Monday night, which led to a public expression of regret from Musk overnight for his social media posts, Jonathan Swan and Theodore Schleifer of New York Times reported, citing three people briefed on the call. Musk's call came after he spoke privately on Friday with Vice President JD Vance and the White House chief of staff, Susie Wiles, about a path to a truce between the two men. In a post on X, Tesla CEO Musk responded to question about when the first public robotaxi rides will start, stating: 'Tentatively, June 22. We are being super paranoid about safety, so the date could shift. First Tesla that drives itself from factory end of line all the way to a customer house is June 28.' Nissan (NSANY) supplier Marelli Holdings announced that it has commenced voluntary chapter 11 cases in the United States Bankruptcy Court for the District of Delaware in order to comprehensively restructure its long-term debt obligations. Approximately 80% of the company's lenders have signed an agreement to support the restructuring, which will deleverage Marelli's balance sheet and strengthen its liquidity position. Throughout this process and moving forward, Marelli does not expect any operational impact from the chapter 11 process, and the company 'will continue to work closely with its customers, suppliers, and partners to innovate and invest in its portfolio of advanced technologies that will differentiate the vehicles of the future and transform mobility,' it said. General Motors (GM) announced plans to invest about $4B over the next two years in its domestic manufacturing plants to increase U.S. production of both gas and electric vehicles. The new investment will give GM the ability to assemble more than two million vehicles per year in the U.S. This announcement comes on the heels of the company's recently announced plan to invest $888M in the Tonawanda Propulsion plant near Buffalo, New York to support GM's next-generation V-8 engine. Intrado Life & Safety and Toyota Connected North America announced a collaboration to provide Advanced Automatic Collision Notification, telematics data to public safety answering points in an i3-compliant format. The data, delivered via AT&T's nationwide ESInet solution, helps 9-1-1 telecommunicators quickly deploy appropriate emergency response resources based on accident severity. Daimler Truck AG (DTRUY), Mitsubishi Fuso Truck and Bus Corporation, Hino Motors, and Toyota (TM) concluded definitive agreements for the integration of Mitsubishi Fuso and Hino. Mitsubishi Fuso and Hino will integrate on an equal footing and cooperate in the areas of commercial vehicle development, procurement, and production. They are aiming to start operations in April 2026. Daimler Truck and Toyota will each aim to own 25% of the listed holding company of the integrated Mitsubishi Fuso and Hino. The holding company plans to own 100% of Mitsubishi Fuso and Hino. The intention is to list the holding company on the Prime Market of the Tokyo Stock Exchange. Further details on the scope and nature of the collaboration, including the name of the new holding company, are intended to be announced over the coming months, the companies stated. One of Tesla's top AI-executives, VP of engineering Milan Kovac, has left the company, a setback for the Optimus robotics project, Becky Peterson of The Wall Street Journal wrote. Kovac oversaw Tesla's development of Optimus, a humanoid robot central to Musk's vision of transforming Tesla into a robotics and AI company. China has granted temporary export licenses to rare-earth suppliers of the top three U.S. automakers as supply chain disruptions begin to surface from the country's export curbs on those materials, Reuters' Laurie Chen and David Shepardson reported. At least some of the licenses are valid for six months, the two sources say. It is unclear what quantity or items are covered by the approval Suppliers of General Motors (GM), Ford (F), and Stellantis (STLA) received clearance for some rare earth export licenses on Monday, one source said. ANALYST COMMENTARY: Guggenheim said that while Tesla shares continue to be driven by robotaxi and political narratives in the near-term, the company's fundamentals 'continue to deteriorate at an alarming rate.' The 'soft' Q2 delivery trends confirm demand for the refreshed Model Y has not helped Tesla's sales momentum, says Guggenheim, which expects 'sizable' negative revisions in the coming weeks to Q2 delivery estimates. The firm's 360,000 estimate is well below the consensus of 415,000. Flowing through lower delivery forecasts for Q2 pushes the company's auto gross margin forecast to 11.5%, below the 14.0% consensus, and free cash flow forecast into negative territory, the analyst told. Guggenheim believes Tesla's Q2 should have benefited from pent-up demand for the Model Y refresh, suggesting future delivery volumes and/or pricing could deteriorate further. It believes 2025 and 2026 expectations for Tesla 'remain incredibly optimistic and bullish catalysts for the automotive business continue to be disproven.' Piper Sandler kept an Overweight rating with a $400 price target on Tesla, but contends that the stock will likely sustain its upward momentum over the coming weeks. Driverless Teslas have been spotted on the streets of Austin, Texas and CEO Musk has acknowledged the deployment while predicting licensing agreements, with the 'key component' of the firm's bullish thesis has started to play out, the analyst tells investors in a research note. Piper warns however that any high-profile robotaxi accidents would likely be met with 'violent downside'. Argus downgraded Tesla to Hold from Buy with no price target. The stock 'appears to be currently trading on non-fundamental events,' says the analyst, who is concerned that the 'war of words' between President Trump and Tesla CEO Elon Musk, along with expiration of EV credits, could further weaken demand for new Teslas. While the firm believes AI-related projects such as Cybercab and Optimus are positive for the company and its valuation, it believes a near-term Hold rating is 'prudent at this time,' the analyst said.


WIRED
3 hours ago
- WIRED
Ahead of Protests, Waymo Scales Back Robotaxi Service Nationwide
A week after five robot cars were burned in Los Angeles, the Google sister company isn't taking risks. Passengers ride in an electric Jaguar I-Pace car outfitted with Waymo full self-driving technology in Santa Monica, CA. Photograph: Allen J. Schaben/Getty Images Waymo will temporarily limit robotaxi service in all of its nationwide markets, the company said Friday, as US cities prepare for a wave of protests of federal immigration policies and law enforcement and military crackdowns on demonstrators. The Alphabet subsidiary will stop service in Los Angeles altogether. Waymo spokesperson Sandy Karp confirmed the service pause and adjustments but declined to comment further. There is no indication how long the service changes will last. The adjustments will affect service in San Francisco, Austin, Texas, and Atlanta, Georgia. On Friday afternoon, some San Francisco riders saw in-app messages showing that all of the company's robotaxis were busy, and so unable to pick up rides. The move comes a week after protesters set fire to five autonomous taxis operated by the company in downtown Los Angeles. Images of the fires went viral on social media, and became a flashpoint in discussions about protester violence and the role tech plays in citizen surveillance. The incident raised questions about the camera and sensor data collected by Waymo on public roads, and how or if it's shared with law enforcement. Earlier this week, Karp told WIRED that the company generally challenges data requests that are overly broad or don't have a sound legal basis. She declined to comment on specific cases. Waymo sometimes adjusts service areas ahead of major events marked by large crowds and traffic, including sports matches and concerts, and in response to incidents like fires or floods where road safety is a concern.