Tesla’s robotaxi pilot in Austin has gone 16 days without a major accident, but what happens when the car hits a person instead of a parked vehicle? The company’s tightly controlled test fleet dinged a parked Toyota Camry outside a pizza parlor on June 24. While Tesla owners may benefit from monetizing their vehicles through robotaxi services, they could be held liable for accidents involving self-driving tech failures.
Tesla’s Autopilot and Full Self-Driving (FSD) features have been criticized for not providing true driver assistance, leaving drivers responsible for vigilance and control at all times. However, if the car is operating in robotaxi mode, Tesla will be solely in control, raising liability concerns. Attorney Mike Nelson says lawsuits against Tesla owners could arise from misrepresentation of the car’s condition or maintenance.
The company has touted its low-cost tech advantage over competitors like Waymo, but this may not offset potential risks in accidents. Insurers are cautious about insuring vehicle owners who rent out their cars through robotaxi services, citing novel and complex risk profiles.
Waymo’s approach to liability is simple: assuming responsibility for accidents and providing medical payment coverage to riders, regardless of fault. However, experts argue that a new nationwide standard for AI software liability is needed.
Phil Koopman, a Carnegie Mellon University professor, questions the lack of clear support from Tesla for its robotaxi users, saying owners may have to deal with police or arbitration after accidents. Elon Musk’s robotaxi dreams raise concerns about the company’s preparedness for the challenges ahead.
Source: https://www.forbes.com/sites/alanohnsman/2025/07/08/elon-musks-robotaxi-dream-could-be-a-liability-nightmare-for-tesla-and-its-owners