TLDR
- Tesla stock dropped 4% on June 17 after production halt at Austin Gigafactory and Musk’s public feud with Trump
- Democratic Texas lawmakers want Tesla to delay June 22 Robotaxi launch until new safety law takes effect September 1
- Consumer survey shows 60% consider Tesla’s Full-Self-Driving technology “unsafe” and 77% unwilling to use it
- NHTSA investigating Tesla’s FSD software following four crashes including one fatal pedestrian incident
- Tesla shares up 75% from 2024 but down 20% this year
Tesla faces mounting pressure to delay its Robotaxi launch scheduled for June 22. Democratic lawmakers in Texas sent a letter asking the company to postpone operations until September 1.
NEWS: A group of Texas lawmakers sent a letter to Tesla urging the company to delay its robotaxi operations in Austin until September 1st, when a revised autonomous vehicle operations framework goes into effect.
This does NOT mean Tesla has to halt its June 22nd robotaxi service… pic.twitter.com/IGZTOxwULG
— Sawyer Merritt (@SawyerMerritt) June 18, 2025
The letter targets Tesla’s director of field quality Eddie Gates. Seven lawmakers signed the request for delay until new self-driving safety laws take effect.
Tesla CEO Elon Musk announced plans to begin robotaxi operations in Austin this Sunday. The lawmakers want detailed compliance information if Tesla proceeds with the original timeline.
Republican control of Texas government makes the Democratic request unlikely to succeed. The party holds the governorship, Senate, and House in the state.
Consumer confidence in Tesla’s technology remains shaky. The May 2025 Electric Vehicle Intelligence Report revealed troubling statistics about public perception.
Sixty percent of respondents consider Tesla’s Full-Self-Driving technology “unsafe.” An even larger 77% said they’re unwilling to use FSD technology at all.
Nearly half of those surveyed believe FSD should be illegal entirely. These numbers spell trouble for Tesla’s robotaxi ambitions.
Safety Incidents Pile Up
The National Highway Traffic Safety Administration is investigating Tesla’s FSD software. Four crashes prompted the federal investigation, including one fatal pedestrian incident.
A recent demonstration in Austin highlighted serious safety flaws. The Dawn Project showed a Tesla Model Y failing to stop for a child mannequin behind a school bus.
Critics point to Tesla’s camera-based system as the problem. The technology struggles in adverse conditions like fog or sun glare.
Recent incidents have intensified scrutiny of Tesla’s autonomous driving claims. A Cybertruck was caught driving in the wrong lane.
A Model 3 got stuck on railroad tracks in another embarrassing episode. These failures raise questions about the technology’s readiness for public deployment.
Tesla’s AI chatbot Grok weighed in on the company’s challenges. The system acknowledged that Tesla’s robotaxi program faces hurdles as launch approaches.
Stock Performance Under Pressure
Tesla stock dropped 4% on June 17 following multiple negative developments. A production halt at the Austin Gigafactory contributed to investor concerns.
Musk’s public feud with President Trump also spooked investors. Some analysts worry Trump could push for stricter federal oversight of Tesla’s robotaxi program.
The stock’s volatile performance reflects broader uncertainty. Tesla shares are up 75% from 2024 but down 20% this year.
Musk’s political involvement has sparked consumer backlash in key markets. Boycotts in Norway and Germany have hurt brand perception internationally.
German-listed Tesla shares fell 1.2% in early trading Thursday. Investors worried about escalating Iran-Israel conflict and Federal Reserve policy uncertainty.
Tesla faces growing competition from multiple fronts. Chinese EV maker BYD, General Motors, and Ford are all gaining ground.
The company’s era of unchallenged supremacy appears to be ending. Intensified competition and declining sales have hurt Tesla’s market position.
Musk recently posted drug test results on X showing negative results for various substances. This followed New York Times allegations about ketamine use during Trump’s campaign.
Grok noted the drug test only covers recent days and doesn’t address 2024 allegations. The timing and method limit the test’s scope for proving long-term sobriety.
Tesla plans to produce one million FSD-capable Model Ys annually. This could enable faster scaling compared to Alphabet’s Waymo, which plans only 2,000 vehicles next year.
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