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The Star
27-07-2025
- Automotive
- The Star
Tesla updates robotaxi users about chauffeur-style service in California, Business Insider reports
FILE PHOTO: A Tesla robotaxi drives on the street along South Congress Avenue in Austin, Texas, U.S., June 22, 2025. REUTERS/Joel Angel Juarez/File Photo (Reuters) -Tesla sent robotaxi users a new terms-of-service agreement detailing its planned launch in California's Bay Area, Business Insider reported citing a screenshot of the notification sent to users on notification said, "If your ride is taking place in California, it is being conducted with a safety driver using Full Self-Driving (Supervised) pursuant to authority from the California Public Utilities Commission," adding that rides taken outside California are "conducted autonomously," confirming Reuters reporting from a day earlier. Tesla did not immediately respond to a request for comment. Reuters reported earlier that unlike Alphabet's Waymo unit, Tesla cannot operate its service using autonomous vehicles in the Bay Area because the EV maker does not have the required permits and has not applied according to the California Public Utilities Commission (CPUC). Tesla said the service would use a variant of its supervised Full Self-Driving software, the report said. For the Bay Area service, Tesla may be able to use its Full Self-Driving (Supervised) feature, which can perform many driving tasks but requires a human driver to pay attention and be ready to take over at all times. This week, Tesla CEO Elon Musk said on an earnings call that the company was "getting the regulatory permission to launch" robotaxis in several markets, including the San Francisco Bay Area. Tesla told the CPUC on Thursday that it plans to offer rides to "friends and family of employees" and "select members of the public" under a permit the company has that allows a human driver to transport passengers in a "traditional vehicle" for "charter services." Tesla recently met with the agency but has not applied for additional permits that would be needed to collect fares or test without a safety driver, Reuters reported earlier this week. The next step for Tesla would be to apply for a CPUC license for an autonomous vehicle to pick up passengers with a safety driver, according to a review of California's autonomous driving regulations. But companies must first operate a pilot phase, where they cannot charge customers. (Reporting by Anusha Shah in BengaluruEditing by Nick Zieminski)


The Star
25-06-2025
- Automotive
- The Star
Tesla's robotaxi peppered with driving mistakes in Texas tests
FILE PHOTO: Arthur Maltin, a test driver with The Dawn Project, hits a crash dummy as it crosses the road during a safety test on a Tesla Model Y's self-driving feature at a protest against Tesla robotaxis, ahead of the Tesla robotaxis' official services in Austin, Texas, U.S., June 12, 2025. REUTERS/Joel Angel Juarez/File Photo (Reuters) -A first public test of robotaxis by Tesla in Austin, Texas led to multiple traffic problems and driving issues, videos from company-selected riders showed over the first few days. Chief Executive Elon Musk has tied Tesla's financial future to self-driving technology, and with Tesla sales down, the stakes are high. He said Tesla would roll out the service to other U.S. cities later this year and predicted "millions of Teslas" operating "fully autonomously" by the second half of next year. The Tesla fans invited to the trial were strongly supportive and posted videos of hours of trouble-free driving, but issues drew questions from federal road safety regulators and auto safety experts. Issues included Tesla robotaxis entering the wrong lane, dropping passengers off in the middle of multiple-lane roads or at intersections, sudden braking, speeding and driving over a curb. In one instance, a robotaxi drove into a lane meant for oncoming traffic for about 6 seconds. It had pulled into an intersection in its left-turn lane with its turn blinker on. Then the steering wheel wobbled momentarily, and instead of turning it proceeded straight into the lane meant for oncoming traffic, prompting a honk from a car behind it. In another incident, the car suddenly brakedwith no obstruction apparent in the video. The passenger jerked forward and their belongings were thrown to the floor. In a third video, taken from another vehicle, a robotaxi abruptly stopped twice in the middle of the road while passing police vehicles with flashing lights. Tesla is conducting the test with human safety monitors in the front passenger seat. A fourth video showed the safety monitor hitting a button to stop the robotaxi when a delivery truck in front of it started backing up. "This is awfully early to have a bunch of videos of erratic and poor driving," said Philip Koopman, a Carnegie Mellon University computer-engineering professor and autonomous-technology expert. "I was not expecting as many videos of problematic driving on the very first day," he said. Tesla is testing about 10 to 20 robotaxis, which are standard Model Ys with advanced software, and has been giving rides since Sunday afternoon. Reuters was able to independently verify the locations of at least 11 videos showing issues. Tesla did not respond to a request for comment. A City of Austin spokesperson said officials are aware of the Tesla issues documented on social media and that "when a potential legal or safety concern is brought to our attention, we promptly share it with the company." The spokesperson added that the police department is "actively collaborating with Tesla" to ensure officers can safely interact with the robotaxis. 'CAUGHT ON CAMERA' The incidents caught on camera did not involve accidents, and one expert said some reflected a decision to focus on safety. "So far so good. It handled the situations very well and likely better than even good drivers," Alain Kornhauser, Princeton University professor of operations research and financial engineering, said by email. He added that it would be more dangerous to drive at less than the speed of prevailing traffic, for instance. Tesla's experiment is unusually public. Other companies faced similar issues: Alphabet's Waymo and General Motors' Cruise had their own share of traffic mishaps after showing up on Austin streets. City officials logged dozens of instances over the past two years where residents and authorities reported that robotaxis blocked traffic by stopping in the middle of roads, failed to respond to police directions and could not deal with emergency vehicles and road closures. A serious accident involving a pedestrian in 2023 led Cruise to shut down last year. Waymo is the only robotaxi service in the U.S. to ferry paying customers without a human backup driver or in-car safety monitor. It started offering rides to the general public through Uber in Austin earlier this year. Musk for years has failed to deliver on promises that self-driving Teslas are just around the corner. Teslarolled out the service for a flat fee of $4.20 to a limited number of handpicked riders. The service is not available to the broader public and the robotaxis operate in a limited area, and avoid difficult intersections and bad weather. Riders were rarely bothered much by driving issues. Farzad Mesbahi, a former Tesla program manager, and his co-passenger hit the "drop off early" option during a ride. The vehicle stopped in an intersection with a stoplight, his video showed. They exit quickly and walk to the sidewalk. "The car should have known to not stop there," Mesbahi is heard saying after the ride. "Opportunities for improvement," the co-passenger says. That is an example "most companies would not be comfortable with," said Kara Kockelman, a professor of transportation engineering at the University of Texas at Austin, adding that she was surprised by the traffic mistakes. "Dropping off people in the middle of a six-lane road or edge of a busy intersection when the traffic is going in the opposite direction is pretty dangerous. They definitely did not want to do this or be caught on camera," she said. (Reporting by Abhirup Roy in San Francisco, Rachael Levy in Washington and Chris Kirkham in Los Angeles; Additional reporting Inaki Malvido, Fernando Robles and Richa Singh; by Editing by Peter Henderson and Nick Zieminski)

Business Insider
25-06-2025
- Automotive
- Business Insider
Tesla's long-awaited robotaxi rollout faced bumps in the road
Good morning. An American moved to France expecting the workplace dynamics to resemble those back home — they were wrong. For one, they had grown used to friendly yet professional office interactions with clear boundaries. Paris was different, they said. Workplace relationships felt far more personal. In today's big story, Tesla's long-awaited robotaxis were rolled out in Austin. What's on deck Markets: From interviewing past midnight to scrambling to sign an offer, a PE professional shared his stressful on-cycle recruitment experience. Business: Homebuyers can't afford to ignore the fight between Zillow and Compass anymore. But first, there's a driver who won't judge your playlist. If this was forwarded to you, sign up here. The big story Tesla's $4.20 robotaxi ride Joel Angel Juarez/REUTERS There were some bumps in the road. After a decade of waiting, Tesla launched a limited self-driving car service in Austin. The first Tesla robotaxi rides were available on Sunday to a small group of invited users for a flat fee of $4.20 (surely not a coincidence). For now, the service is geofenced to avoid Austin's more challenging intersections. The cars came with a passenger already buckled in — a Tesla employee as a safety precaution. In footage seen by BI, there appeared to be no significant intervention from the supervisor. The vehicles did several things right, but the rollout wasn't without its hiccups. One video showed a passenger being driven across double yellow lines into the wrong lane, prompting a car behind to honk at it. During the same ride, the robotaxi also exceeded the 35-mph speed limit on multiple occasions. While the rollout used the current Tesla Model Y, sources told BI the company is building a modified version of the car for its robotaxi fleet. The project, internally referred to as "Halo," involves cars with self-cleaning cameras and extra protection for the cameras to prevent damage and debris, one insider said. The rollout came at a turbulent time for Musk. At the end of March, Tesla capped its worst quarter since 2022 amid protests at its showrooms. Then, earlier this month, Tesla stock plummeted more than 14% following a very embittered, very public falling out between Elon Musk and US President Donald Trump. Competition is also fierce. Waymo has such cabs in several cities, including Los Angeles, San Francisco, and Austin. They don't require human supervisors to be present, and their service range in Austin is about twice the size of Tesla's current operating limits. Their technology differs, too. Tesla relies on a set of cameras mounted on its vehicles, rather than expensive radar and lidar sensors used by Waymo. This is in part why Musk expects Tesla's purpose-built Cybercab to sell for less than $30,000. Waymo, meanwhile, retrofits existing vehicles with its technology, which can result in a list price as high as $70,000. Although the robotaxi arrived years later than promised, Tesla's rollout was a critical step for Musk's ambitions to make an Uber-like network of autonomous vehicles. The company's stock price leapt 8% when the markets opened on Monday, causing Musk's net worth to jump by $19 billion. 3 things in markets 1. Inside private equity's recruiting nightmare. The industry's process for hiring junior talent is notoriously competitive and chaotic. One PE professional shared his recruiting experience with BI, detailing how he interviewed until 2:30 a.m. with one firm and hid in the bathroom to call headhunters during interviews with another. 2. More Fed officials are calling for rate cuts. Three top officials appear to be on the same page as President Donald Trump after the Fed decided to hold interest rates steady last week. Fed Chairman Jerome Powell defended the central bank's patient approach in his testimony to Congress on Tuesday. Here's what the Fed officials are saying. 3. Tariff worries could soon make a comeback. July 9 is the end of the 90-day pause on Trump's tariffs. Markets are in relief mode now over Israel and Iran's ceasefire, but Morgan Stanley laid out three reasons why tariff anxiety could take center stage again. 3 things in tech 1. How AI data centers are deepening the water crisis. Large AI data centers each guzzle up millions of gallons of fresh water a day — enough for tens of thousands of Americans. Despite drought deepening, a BI investigation found that Big Tech companies have put nearly half of these centers in the most water-stressed areas of the US. 2. Why does Apple keep pulling its ads? The iPhone maker used to be infamous for its ad campaigns, but now Apple is becoming more known for yanking them. Its latest ad vanished from YouTube and Apple's site a few days ago, and BI's Peter Kafka doesn't get why. 3. What we know about the mystery device from OpenAI and Jony Ive. Or rather, what it won't be. Tang Tan, cofounder of Ive's io, revealed in legal filings that the highly anticipated AI device doesn't go in your ear and isn't a wearable. 3 things in business 1. Homebuyers are caught in the middle of an ugly real-estate fistfight. Compass and Zillow have been trading blows over who gets to see the houses for sale in America and where buyers will have to go to find them. Everyday consumers can't afford to ignore it anymore, writes BI's James Rodriguez. 2. The vibes are rank in HR right now. Nonstop layoffs, RTO mandates, AI training demands, not to mention concerns over immigration raids in the workplace — it's all piling up on HR workers. They told BI about the parts of the job that are getting downright ugly. 3. Disney's tough June. The company laid off workers for the second time this month, this time in product and technology. The layoffs affected under 2% of the group, according to a person with direct knowledge. In other news Tech stocks power Nasdaq 100 to a record high as markets celebrate the Israel-Iran ceasefire. Jeff Bezos and Lauren Sánchez's wedding guest list: A-listers arrive in Italy to celebrate. Bombings set back Iran's nuclear program, but likely didn't kill it. Logan Paul's Prime sales plummet in a key market as the once-popular drink has growing pains. Chase Sapphire Reserve's changes are making some people furious. I'm finally vindicated. The American dream used to be owning a home — now it's just finding one to rent. The massive heat wave, stretching from Maine to Texas, is slowing commuters down and making their waits miserable. Gamers are loving Nintendo's Switch 2 — and investors are loving the stock. Meet 19 startups in social networking, dating, and AI that investors have their eyes on. Buy now, pay later loans will soon hit credit scores — and experts think Gen Z could be at risk. The price of your regular Starbucks order could be about to change — if you load up on add-ons like syrups or matcha. What's happening today Fed Chair Jerome Powell presents semiannual monetary policy report to the Senate Banking Committee. Dan DeFrancesco, deputy editor and anchor, in New York (on parental leave). Hallam Bullock, senior editor, in London. Meghan Morris, bureau chief, in Singapore. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Akin Oyedele, deputy editor, in New York. Ella Hopkins, associate editor, in London.


The Star
23-06-2025
- Automotive
- The Star
Tesla shares soar after first robotaxi rides hit the road in Austin, Texas
A Tesla robotaxi with no backseat passengers drives on the street along South Congress Avenue in Austin, Texas, U.S., June 22, 2025. REUTERS/Joel Angel Juarez (Reuters) -Tesla shares jumped 10% on Monday, lifted by the long-awaited launch of the company's robotaxi service that CEO Elon Musk has for years championed as a key driver of the electric vehicle maker's lofty valuation. The automaker deployed a small fleet of self-driving taxis in Austin, Texas, on Sunday, marking the first time its cars have carried paying passengers without human drivers. The rides were being offered for a flat fee of $4.20 in a limited zone. The trial's success is crucial for Tesla as Musk has pivoted the company to self-driving cars and robots, shelving plans for mass-market dominance in the EV space as Chinese competition heats up and demand slows for its aging line-up of models. "It was a comfortable, safe, and personalized experience," said Wedbush Securities analyst Dan Ives, who took multiple robotaxi rides on Sunday and has long been a Tesla bull. "There was a moment where we drove up a narrow road going up a hill with cars parked on both sides with oncoming traffic and people opening their car doors into the road and the robotaxi masterfully maneuvered with patience and safety." Many social-media influencers also posted videos of their first rides on X, showing the cars navigating busy city streets by slowing down and making room for incoming traffic. Still, the tightly controlled trial - with about 10 vehicles and front-seat riders acting as "safety monitors" - is just the first step in what could be a years-long process of scaling up the service, according to some industry experts. Tesla, as well as rivals including Google-backed Waymo, have faced federal investigations and recalls following collisions. Industry experts have questioned the efficacy of Tesla's self-driving technology that depends mostly on cameras and AI, without redundant sensors such as lidar and radar, claiming fog, heavy rain and glaring sunlight can hamper safety. The company will also have to navigate a new Texas law taking effect September 1 that requires a state permit for self-driving vehicles and reflects bipartisan calls for a cautious roll-out. (Reporting by Aditya Soni in Bengaluru; Editing by Anil D'Silva)


The Star
23-06-2025
- Automotive
- The Star
Factbox-How Tesla's robotaxi efforts stack up against Waymo and Zoox
A Tesla robotaxi with no backseat passengers drives on the street along South Congress Avenue in Austin, Texas, U.S., June 22, 2025. REUTERS/Joel Angel Juarez (Reuters) -Electric car maker Tesla started a trial of its long-awaited robotaxi service in Austin, Texas, on Sunday, the first step toward what could be a showdown with Alphabet's Waymo, the only player currently offering fully autonomous paid rides in the United States. Tesla Chief Executive Elon Musk has started off with about 10 Model Ys and promised to focus on safety. He says Tesla could scale quickly, and he plans a separate robotaxi vehicle. Social media influencers were seen booking and taking rides in the robotaxis in several Austin locations on Sunday, according to videos reposted by Musk. Here is how Tesla's cybercab efforts compare with those of Waymo and Zoox, which is preparing its own commercial launch: LOCATIONS VEHICLE DESIGN AND TECHNOLOGY Feature Waymo Tesla Zoox Vehicle Type Jaguar I-Pace Model Y Custom built bidirectional pod Steering Yes Yes in No wheel current test Autonomous LiDAR, cameras, Cameras LiDAR, technology radars cameras, radars Autonomy Level 4 - Testing Level Testing Level level autonomous 4 4 within limits Launch of 2018 2025 Expected paid service later in 2025 Teleoperatio Yes Yes Yes n - human guidance or control Rides/vehicl More than About 10 More than 20 es 250,000 rides a vehicles vehicles in week testing phase (Reporting by Zaheer Kachwala in Bengaluru; Editing by Chris Reese)