NATIONAL NEWS – Tesla’s Robotaxi Launches as videos of vehicles driving erratically cause stock to drop

Ananya Roy, News Writer

Tesla’s highly anticipated Robotaxi rollout in Austin got off to a rocky start this week, triggering a more than 4% drop in the company’s stock on Tuesday. Despite initial investor excitement, videos quickly surfaced showing the autonomous vehicles driving erratically—swerving into oncoming traffic, rolling through intersections, and braking unexpectedly near police cars. Though billed as fully driverless, the cabs still include human safety monitors, which caught investors by surprise.

The National Highway Traffic Safety Administration has confirmed it is reviewing the footage, as public scrutiny grows. The Robotaxi program is central to Tesla’s long-term strategy, but the early missteps have cast doubt on the company’s ability to deliver. Pressure is mounting as competitors like Waymo continue to expand smoothly into new cities, highlighting the challenges Tesla faces in the autonomous vehicle space.