Tesla launched its highly anticipated Robotaxi service on 22 June in Austin, Texas—quietly, and for a chosen few. Only a handful of Tesla Model Y vehicles (between 10 and 20) were unleashed in a geofenced patch of South Austin. Zones include South Lamar, East Riverside, and the quirky Rainey Street Historic District. The service is invite-only, limited to Tesla enthusiasts and influencers who livestreamed their rides and posted footage online.
Each ride costs a flat $4.20 and is hailed through an Uber-like app. The backseat passengers get a real-time map on a rear screen and can even access their Tesla account playlists. The cars log users out after each ride for privacy. It’s clever. It’s futuristic. And, at times, it’s a little weird.
Caught on Camera: The Good, the bad, the odd
No sooner had the Robotaxis hit the road than Redditors began compiling clips of their misadventures. So far, at least 11 videos have surfaced showing Tesla’s AI making questionable decisions. The footage includes:
Other clips show the vehicles bumping over kerbs or hesitating at intersections. At least one user reported belongings being tossed forward during a sudden brake. The videos are real. The reactions, mixed.
Vision-only: Tesla bets on cameras, not lasers
Unlike its rivals, Tesla’s system doesn’t use LiDAR or radar. It relies only on cameras and Elon Musk’s long-touted Full Self-Driving (FSD) software. The version used in the Robotaxi doesn’t need a human behind the wheel, but for now, each vehicle includes a human “safety monitor” in the front seat.
In one video, a monitor was seen pressing the emergency stop button when a delivery truck began reversing toward the Robotaxi. In another, the AI successfully pulled over to let an ambulance pass, outperforming even a human-driven Cybertruck nearby.
But camera-only navigation comes with trade-offs. Sunlight glare reportedly caused a car to brake unexpectedly. Critics argue this reveals the limits of Tesla’s approach. As one Redditor put it: “If the sun can confuse it, what happens in fog or at night?”
The National Highway Traffic Safety Administration (NHTSA) confirmed it is “aware of the referenced incidents and is in contact with the manufacturer.” A spokesperson added, “NHTSA does not pre-approve new technologies or vehicle systems — rather, manufacturers certify that each vehicle meets standards, and we investigate incidents involving safety defects.”
The City of Austin said it was “actively collaborating with Tesla” after reports of erratic stops and awkward pickups circulated online. Local police are also being briefed to safely interact with the cars.
University of Texas professor Kara Kockelman didn’t mince words, “Dropping off people in the middle of a six-lane road or edge of a busy intersection when traffic is going in the opposite direction is pretty dangerous,” she told Business Insider.
Philip Koopman, an autonomous tech expert at Carnegie Mellon, was surprised by the sheer volume of footage.
“I was not expecting as many videos of problematic driving on the very first day,” he said.
Still, not everyone’s panicking. Alain Kornhauser of Princeton University took a more optimistic view:
“So far so good. It handled the situations very well and likely better than even good drivers.”
Tesla’s bumpy ride on the markets
On the day of the Robotaxi pilot launch, Tesla shares briefly surged by 11%, closing up 8%. But the rally fizzled out the next day. The enthusiasm may have reflected hope in the company's long-term vision, but investors appear cautious about the realities of the rollout.
Meanwhile, Tesla’s sales in Europe continue to slide. Despite a new Model Y and a dedicated Gigafactory in Germany, May saw a significant year-over-year drop in sales. If June numbers don’t rebound, Tesla risks losing ground in one of its most strategic markets. While the Robotaxi was only released in Austin, Texas, these are the sales figures from Europe.
In China, BYD is outperforming nearly all rivals. Despite price wars, it has retained healthy profit margins and now controls over half the country’s EV market. In May alone, plug-in vehicles made up 53% of all new vehicle sales in China—with battery electric vehicles accounting for 31%.
Back in the U.S., Tesla faces stiff competition from Waymo, whose Robotaxis in Austin operate in twice the coverage area and do so without human monitors onboard. Waymo recently expanded to Atlanta via Uber, while Tesla’s own rollout remains cautious and limited.
Tech test or public Beta?
Tesla says this is still an early-access programme, not a full public launch. It avoids tricky intersections, bad weather, and kids under 18. No serious crashes have occurred yet. And many testers described the rides as smooth, even impressive. One YouTuber, Bearded Tesla Guy, showed how the vehicle navigated a packed grocery car park—first hesitating, then asserting itself and finding a way out.
But the footage also reveals the service’s fragility. A ride that stops in an active intersection? A vehicle picking up in a handicapped spot? These are not errors that Tesla wants going viral.
And that’s the catch. This is a test conducted in full public view, where every minor glitch is filmed, analysed, and reposted. It’s a bold move. And a risky one.
Elon Musk has promised that this pilot will lead to a national rollout—eventually “millions” of Teslas operating as fully autonomous taxis by mid-2026. A new model, the Cybercab, will ditch the steering wheel and pedals entirely. But so far, all that’s visible is a handful of Model Ys trundling through a few square miles of South Austin.
That’s the tension. Tesla wants to race toward the future. But every clipped kerb, botched stop and swerved lane is a reminder: autonomy is hard. The world is messy. And even the smartest robots still have a lot to learn.
Each ride costs a flat $4.20 and is hailed through an Uber-like app. The backseat passengers get a real-time map on a rear screen and can even access their Tesla account playlists. The cars log users out after each ride for privacy. It’s clever. It’s futuristic. And, at times, it’s a little weird.
Caught on Camera: The Good, the bad, the odd
No sooner had the Robotaxis hit the road than Redditors began compiling clips of their misadventures. So far, at least 11 videos have surfaced showing Tesla’s AI making questionable decisions. The footage includes:
- A Robotaxi swerving briefly into the wrong lane with its blinker on, skipping a turn and driving directly into oncoming traffic lanes.
- Cars that suddenly brake mid-street with no visible obstacle.
- A ride that pulled into a handicapped parking space to collect its passenger.
- A Tesla stopping dead in the middle of the road after a rider pressed the “pull over” button on the screen.
Other clips show the vehicles bumping over kerbs or hesitating at intersections. At least one user reported belongings being tossed forward during a sudden brake. The videos are real. The reactions, mixed.
Vision-only: Tesla bets on cameras, not lasers
Unlike its rivals, Tesla’s system doesn’t use LiDAR or radar. It relies only on cameras and Elon Musk’s long-touted Full Self-Driving (FSD) software. The version used in the Robotaxi doesn’t need a human behind the wheel, but for now, each vehicle includes a human “safety monitor” in the front seat.
In one video, a monitor was seen pressing the emergency stop button when a delivery truck began reversing toward the Robotaxi. In another, the AI successfully pulled over to let an ambulance pass, outperforming even a human-driven Cybertruck nearby.
But camera-only navigation comes with trade-offs. Sunlight glare reportedly caused a car to brake unexpectedly. Critics argue this reveals the limits of Tesla’s approach. As one Redditor put it: “If the sun can confuse it, what happens in fog or at night?”
The National Highway Traffic Safety Administration (NHTSA) confirmed it is “aware of the referenced incidents and is in contact with the manufacturer.” A spokesperson added, “NHTSA does not pre-approve new technologies or vehicle systems — rather, manufacturers certify that each vehicle meets standards, and we investigate incidents involving safety defects.”
The City of Austin said it was “actively collaborating with Tesla” after reports of erratic stops and awkward pickups circulated online. Local police are also being briefed to safely interact with the cars.
University of Texas professor Kara Kockelman didn’t mince words, “Dropping off people in the middle of a six-lane road or edge of a busy intersection when traffic is going in the opposite direction is pretty dangerous,” she told Business Insider.
Philip Koopman, an autonomous tech expert at Carnegie Mellon, was surprised by the sheer volume of footage.
“I was not expecting as many videos of problematic driving on the very first day,” he said.
Still, not everyone’s panicking. Alain Kornhauser of Princeton University took a more optimistic view:
“So far so good. It handled the situations very well and likely better than even good drivers.”
Tesla’s bumpy ride on the markets
On the day of the Robotaxi pilot launch, Tesla shares briefly surged by 11%, closing up 8%. But the rally fizzled out the next day. The enthusiasm may have reflected hope in the company's long-term vision, but investors appear cautious about the realities of the rollout.
Meanwhile, Tesla’s sales in Europe continue to slide. Despite a new Model Y and a dedicated Gigafactory in Germany, May saw a significant year-over-year drop in sales. If June numbers don’t rebound, Tesla risks losing ground in one of its most strategic markets. While the Robotaxi was only released in Austin, Texas, these are the sales figures from Europe.
In China, BYD is outperforming nearly all rivals. Despite price wars, it has retained healthy profit margins and now controls over half the country’s EV market. In May alone, plug-in vehicles made up 53% of all new vehicle sales in China—with battery electric vehicles accounting for 31%.
Back in the U.S., Tesla faces stiff competition from Waymo, whose Robotaxis in Austin operate in twice the coverage area and do so without human monitors onboard. Waymo recently expanded to Atlanta via Uber, while Tesla’s own rollout remains cautious and limited.
Tech test or public Beta?
Tesla says this is still an early-access programme, not a full public launch. It avoids tricky intersections, bad weather, and kids under 18. No serious crashes have occurred yet. And many testers described the rides as smooth, even impressive. One YouTuber, Bearded Tesla Guy, showed how the vehicle navigated a packed grocery car park—first hesitating, then asserting itself and finding a way out.
But the footage also reveals the service’s fragility. A ride that stops in an active intersection? A vehicle picking up in a handicapped spot? These are not errors that Tesla wants going viral.
And that’s the catch. This is a test conducted in full public view, where every minor glitch is filmed, analysed, and reposted. It’s a bold move. And a risky one.
Elon Musk has promised that this pilot will lead to a national rollout—eventually “millions” of Teslas operating as fully autonomous taxis by mid-2026. A new model, the Cybercab, will ditch the steering wheel and pedals entirely. But so far, all that’s visible is a handful of Model Ys trundling through a few square miles of South Austin.
That’s the tension. Tesla wants to race toward the future. But every clipped kerb, botched stop and swerved lane is a reminder: autonomy is hard. The world is messy. And even the smartest robots still have a lot to learn.
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