By Bernard Condon
NEW YORK (AP) – Federal safety regulators have asked Elon Musk’s automotive company to explain how unmanned taxis won’t cause an accident when they reach the road in Texas next month, ahead of the nationwide “Lobotakshi” launch, which is key to keeping stocks high.
Tesla is said to provide information on how taxis operate safely in Austin, Texas when there is fog, sun glare, rain, and other low visibility conditions that are linked to accidents involving company driver assistance software. These accidents, including those that killed pedestrians, sparked the National Highway Traffic Safety Agency in October to begin investigating 2.4 million musk vehicles.
The billionaire was relieved last month with a revenue call that investors would launch in Austin as planned and that millions of Robotaxis and other autonomous autonomous Teslas will soon be launched to other autonomous autonomous Teslas, which are active by the end of the year.
“We expect green light after Tesla’s reaction, but after the Austin pilot began, there’s a big focus on wider launches in the US,” said Dan Ives, an equity analyst at Wedbush Securities. “It’s a crucial time for Musk.”
In the same call, Musk said he is retreating from his job as emperor at the expense of President Donald Trump’s government. Tesla shares are up 45%, but still falling about 17% per year.
It’s not surprising that regulators regularly request safety information from car manufacturers and NHTSA orders themselves, but if Tesla’s response to the nine-page letter published by the agency on Monday is not satisfactory, it could lead to delays in Austin’s launch. The agency has made its responses to Tesla until June 19th.
Federal regulators are limiting their authority over new Tesla taxis that operate without steering wheels or brake pedals due to the lack of national regulations on autonomous driving technology. One fallback is that the vehicle itself still has to go past its long-standing safety checks.
“The NHTSA can force a recall by Tesla “voluntarily” or by ordering a recall,” said previous NHTSA chief Anne Carlson. “However, agents cannot require any prior approval of Tesla before it can be launched.”
In the letter, regulators pose several questions to Tesla, in addition to those relating to low visibility. They requested the number and models of taxis, when and where taxis will be deployed in the coming months, how they will be monitored remotely in real time by Tesla, the specific measures used to guide the vehicle, whether cameras and other sensors are navigating the streets in a safe way, and the names of those who are evaluating Tesla’s name.
During an investor conference call last month, Musk said he was moving his future in the next few months.
“Can you sleep in our car and wake up at your destination?” the billionaire asked, “I’m sure by the end of this year we’ll be available in many cities in the US.”
If such a future doesn’t come soon, the company may struggle to justify the still high price of its stock.
Tesla reported a 71% profit fall in the first quarter as he faced an angry protest over Mask’s embrace over his role in cutting down the work of the government that split the country with extreme right-wing politicians in Europe.
Original issue: May 13th, 2025, 5:46pm EDT
