(Image Credit: IMAGN) This Tesla Model 3 sedan, owned by a Silicon Valley resident and rented out on peer-to-peer site Turo, represents the company's attempt to move electric vehicles into the mainstream market.
Washington D.C. – Federal safety regulators are pressing Tesla to explain how its soon-to-launch driverless taxis will operate safely in real-world conditions, as the company prepares for a critical rollout in Austin, Texas next month. The pilot marks a key step in Elon Musk’s ambitious plan to deploy a national “robotaxi” network by year’s end.
The National Highway Traffic Safety Administration (NHTSA) formally requested Tesla to detail how its autonomous vehicles will handle challenging visibility conditions such as fog, rain, and sun glare—factors linked to multiple crashes involving Tesla’s existing driver-assistance software. One such incident resulted in the death of a pedestrian, prompting NHTSA to open an investigation in October into 2.4 million Tesla vehicles.
While Tesla CEO Elon Musk assured investors last month that the Austin launch would proceed as planned, federal officials now want Tesla to explain how it will ensure the safety of its vehicles under unpredictable driving conditions. The agency gave the company until June 19 to respond to its nine-page letter, which was made public Monday.
The robotaxi initiative is a high-stakes endeavor for Tesla. Analysts view it as crucial to supporting the company’s elevated stock price, which, despite a 45% gain since Musk’s investor call, remains down 17% for the year. “It’s a pivotal time for Musk,” said Dan Ives, a tech analyst at Wedbush Securities. “The Austin launch is key to a broader nationwide rollout.”
On the same earnings call, Musk also announced he was stepping back from his role as President Donald Trump’s government cost-cutting czar—a move seen as an effort to refocus on Tesla amid mounting scrutiny.
Although federal regulators have limited authority to block the rollout of autonomous vehicles—due to the absence of national standards for self-driving tech—they can still enforce safety recalls. “NHTSA can force a recall,” said Ann Carlson, former acting NHTSA chief. “But it cannot require pre-approval before Tesla launches.”
In addition to concerns about poor visibility, regulators asked Tesla to disclose the number and models of robotaxis that the company will deploy, when and where they’ll operate, how they will be remotely monitored, and what cameras, sensors, and evaluation metrics will be used to ensure safe navigation. They also requested the names of Tesla employees overseeing these evaluations.
Despite growing concerns, Musk remained optimistic about the future of autonomous travel, telling investors: “Can you go to sleep in our cars and wake up at your destination? I’m confident that will be available in many cities in the U.S. by the end of this year.”
Tesla is under pressure to deliver. The company reported a 71% drop in first-quarter profits, while facing backlash over Musk’s political activities and workforce cuts that have polarized public opinion.
