Federal traffic safety regulators today are investigating videos showing very concerning interactions with Tesla’s still-in-beta robotaxi service in wide circulation on social media. The service, which is presently operational with only a limited fleet of about a dozen vehicles, has raised concerns after some passengers shared footage showcasing problematic incidents during their rides. One alarming video captured a Tesla robotaxi traveling down a lane designated for oncoming traffic, prompting further scrutiny from authorities.
Elon Musk, CEO of Tesla, has consistently projected a bright future for the Tesla operated robotaxi service. If the service is successful, he expects a quick expansion to several more cities. Musk has a slightly grander vision of launching as many as one million automated cabs by the close of this year. This ambitious plan relies on smooth operation and gaining regulatory approval.
All of the controversy around the new robotaxi service didn’t seem to negatively impact reviews, which have overall been good. Every passenger to date has marveled at the experience, furthering the futuristic vibe that comes with Tesla’s new, automated, people-mover. Nevertheless, the sudden and pronounced regulatory spotlight might threaten to warp public understanding and acceptance of the technology.
The electric vehicle (EV) market, and specifically Tesla’s market share, is sizzling hot in Europe. Germany, especially, is showing astounding growth in this area. Nationally, sales of battery electric vehicles were up 25% from last year, despite ongoing supply chain challenges, demonstrating unprecedented demand and interest from consumers. Notably, China’s SAIC Motor emerged as a leading competitor in the European market, achieving a remarkable 38% increase in sales for both EVs and conventional vehicles.
Tesla’s prospects may face additional challenges in Germany, where Musk’s recent public support for the far-right, anti-immigrant Alternative for Germany party has reportedly alienated some potential buyers. This hostile political climate may significantly dampen Tesla’s potential sales growth in a market that has been otherwise boons for EV sales to electric Teslas.
Despite these setbacks, Tesla has in recent years been able to quickly retool factories. Now, they should be able to produce a new era version of their popular Model Y. This retooling was completed many months ago, and their new models are now commercially available and in widespread use. All these developments were reason to expect a massive sales boost Tesla sold its sales figures.
Even with these encouraging signs in the broader market, Tesla’s stock was suffering Wednesday morning. As of midday on Friday, the stock was down over 4% on the day. This dip reflects investor concerns over the still active regulatory probe and how that’ll shape the company’s operations moving forward.
