NEWS  /  Analysis

Tesla Stock Dips as Robotaxi Incidents on U.S. Regulators' Radar

By  LiDan  Jun 25, 2025, 2:12 a.m. ET

The National Highway Traffic Safety Administration said it will take "necessary actions to protect road safety" after assessing a wide array of reports and information.

AsianFin -- Tesla Inc. Stock dipped around 2.4% on Tuesday, paring part of the 8.2% jump, the largest daily gain in nearly two months set a day earlier. Shares retreated and underperformed the stock market as the electric vehicle giant’s robotaxi service is on U.S. regulators’ radar just days after the highly-awaited artificial intelligence (AI)-powered self-driving service launched.

Credit:Tesla

Credit:Tesla

Several videos posted on Tesla CEO Elon Musk’s social media platform X showed Tesla’s robotaxi rides violated local traffic laws by driving above posted speed limits, swerving across lanes, and hesitating to turn. 

In one video among them, a Tesla robotaxi vehicle commits two traffic violation as it first enters a left-turn-only lane, then proceeds to go straight through the intersection and cross a double yellow line the process. Another video shared online showed one of robotaxi vehicles brakes hard twice for stationary polic vehicles outside its driving path.

The videos have already drawn the National Highway Traffic Safety Administration (NHTSA) ‘s attention. The agency in charge of automobile safety regulations in the U.S., is aware of the referenced incidents and is in contact with the manufacturer to gather additional information, according to an emailed statement from the regulator. 

“NHTSA does not pre-approve new technologies or vehicle systems–rather, manufacturers certify that each vehicle meets NHTSA’s rigorous safety standards, and the agency investigates incidents involving potential safety defects,” the NHTSA said. The agency said it will take “necessary actions to protect road safety”after assessing a wide array of reports and information. 

NHTSA has opened an investigation into Tesla’s full self-driving (FSD) Supervised program and in May asked Tesla to release data from its advanced driver assistance system when it heard from the company that the robotaxi service in Austin is based on the FSD program. The request for more information aims to understand how Tesla plans to ealuate its vehicle and driving automation technologies for use on public roads, according to an email sent by Tanya Topka, Director of NHTSA’s Office of Defects Investigation. 

 In the statement on Tuesday, NHTSA said its investigation into Tesla’s FSD-Supervised/Beta software remains open.

Musk in May told CNBC Tesla’s robotaxi service will start with about 10 Model Y vehicles in Austin, and these vehicles will be equipped with a new version called FSD Unsupervised. He said Tesla planned for robotaxis on Austin roads in June, aiming to expand the service into Los Angeles and San Francisco later.

Musk on Sunday confirmed Tesla began to offer robotaxi service at that day’s afternoon in Austin, the capital city of the U.S. Texas state, with customers paying at a $4.20 flat. In X post on Sunday, Musk touted the seccessful robotaxi launch. “Super congratulations to the @Tesla_AI software & chip design teams on a successful @Robotaxi launch!! Culmination of a decade of hard work. Both the AI chip and software teams were built from scratch within Tesla,” he said.

With an updated FSD, the robotaxi service is available for a limited number of Tesla riders that have been invited as early access users. The Model Y vehicles running as robotaxi without safety drivers inside can ride in a geofenced area of Texas, but were backed by safety teleoperators able to control the vehilce incase of emergency and monitored by a Tesla employee sitting in the passenger seat who can intervene in case of an issue.

Following Musk’s tweets, lots of posters on X said they were able to hail and ride Model Y vehicles emblazoned with “Robotaxi” graphics in Austin. One of them claimed they did 11 rides with the service “with zero issues”.

The Electrek found the vibe the EV and clean energy new media outlet most got was positive, with the word “smooth” are usually mentioned. Though it noted riders who posted ride videos or experiences of robotaxi are all Tesla fans and/or investors, which are less interested in criticizing the company while very familiar with the current abilities and limitations of its systems. The Verge reported most of the early testers said the experiences were “smooth” and “natural”, but there was a robotaxi driving on the wrong side of the road. 

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