Will Tesla’s Robotaxi Dreams Finally Materialize?

Elon Musk has promised a robotaxi service from Tesla for six years, and now it seems like the company’s autonomous vehicles are finally set to roll out in Austin, Texas on June 22. But can Tesla overcome concerns about safety and viability to make its robotaxi dream a reality? Experts say that while technology is advancing rapidly, economic challenges and competition from established services like Uber and Waymo will be difficult for Tesla to overcome.

Musk’s robotaxi service is part of his plan to inject cash into the company, which has been experiencing declining sales and profits. However, even with Tesla’s investment in autonomous vehicles, experts warn that it faces significant competition from human drivers of ride-hailing services like Uber and Lyft. “The challenge is less technological and more economic,” says Bryant Walker Smith, an expert in autonomous vehicles.

While Waymo, a Google subsidiary, has already launched successful robotaxi services in several cities, Tesla’s approach will be different. The company’s self-driving technology uses only cameras, not radar or lidar sensors used by Waymo. This has raised concerns about safety, as lidar is considered more effective at detecting obstacles.

Despite these challenges, Musk remains optimistic about the potential of robotaxis to revolutionize transportation. However, his own track record on setting ambitious targets for Tesla’s robotaxi service has been disappointing. Experts like Gordon Johnson and Smith doubt that Tesla can deliver on its promises and predict a mixed or disappointing launch.

As Tesla prepares to roll out its robotaxi service, investors will be watching closely to see if the company can overcome its challenges and deliver on its promises. With the future of transportation at stake, it remains to be seen whether Tesla’s vision for a world of self-driving cars will finally materialize.

Source: https://edition.cnn.com/2025/06/12/business/musk-tesla-robotaxi-rollout-austin