Tesla Robotaxi Incidents Raise Safety Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7 hours ago
0mins
Should l Buy TSLA?
Source: stocktwits
- Frequent Incidents: Tesla's robotaxis in Austin have reported 14 accidents since their deployment in June 2025, including five new incidents, highlighting serious safety concerns surrounding the technology.
- No Safety Monitoring: The launch of robotaxis without safety monitors in January 2026 marks a critical step in CEO Elon Musk's ambition to deploy autonomous vehicles across the U.S. by year-end, but raises significant safety worries.
- Accident Details: The latest five reported incidents include collisions with fixed objects, a bus, and backing into obstacles, indicating various safety risks that could undermine public trust in Tesla's Full Self-Driving (FSD) technology.
- Regulatory Investigation: The National Highway Traffic Safety Administration (NHTSA) has opened an investigation into approximately 2.9 million Tesla vehicles due to potential traffic law violations related to FSD, increasing market uncertainty regarding Tesla's future prospects.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 417.440
Low
25.28
Averages
401.93
High
600.00
Current: 417.440
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Efficiency Boost: CEO Elon Musk stated that Tesla's production lines will ultimately be able to produce a Cybercab every 10 seconds, significantly enhancing the company's output to meet future demand for autonomous taxis in a rapidly evolving market.
- Pricing Commitment: Musk reiterated on social media that the Cybercab is targeted to be priced below $30,000, despite skepticism from the market; this pricing strategy aims to attract more consumers and expand market share, particularly in the competitive EV landscape.
- Technological Innovation: The Cybercab will feature wireless charging technology, eliminating the need for plug-in ports, along with butterfly-style doors and the sharp design of the Cybertruck, albeit without the stainless steel to reduce costs, enhancing user experience and product appeal.
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See More
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- Corrective Actions: During the 90-day window provided by regulators, Tesla implemented changes to its marketing strategy, now referring to 'Full Self-Driving' as 'supervised driving' and ceasing the use of 'Autopilot' in its California marketing.
- Market Impact: This decision not only prevents a short-term sales disruption for Tesla but also indicates the company's adaptability in addressing regulatory challenges, potentially enhancing consumer confidence in the safety of its products.
See More
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- Demand Challenges: Following the expiration of key tax credits, Tesla and other EV manufacturers are grappling with a significant drop in demand, prompting a reevaluation of market strategies to sustain sales.
- Strategic Shift: CEO Elon Musk is pivoting the company's focus towards robotaxis equipped with self-driving technology and humanoid robots, indicating a forward-looking approach to future mobility solutions.
- Regulatory Pressure Response: The California DMV previously accused Tesla of misleading consumers, and after revising its terminology regarding 'Full Self-Driving', the company is now concentrating on the term 'autopilot' to alleviate regulatory pressure and restore consumer trust.
See More
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- LiDAR Advantage: Utilizing LiDAR technology, Waymo's per-vehicle costs are estimated to be two to three times higher than Tesla's, yet its superior precision and safety in rapidly changing road conditions may position it as the dominant solution for passenger vehicles.
- Market Competition: Success in the robotaxi market for Waymo hinges not only on the number of vehicles deployed but also on the choice of autonomous driving technology, with LiDAR potentially providing a sustainable competitive edge that distinguishes Waymo from its competitors.
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See More
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- Surge in Trading Volume: The trading volume reached 55.4 million shares, approximately 43% above the three-month average, indicating heightened investor interest and volatility in market sentiment regarding Rivian's prospects.
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