Elon Musk pushes ahead with robotaxi expansion despite safety and regulatory hurdles

Elon Musk has continued to push forward with plans for a major expansion of Tesla’s robotaxi service, despite ongoing challenges and limitations with the technology. During a recent earnings call, Musk revealed that the company intends to bring its autonomous ride-hailing service to new cities, including locations in Florida, Nevada, Arizona, and California. Tesla is also testing its Full Self-Driving (Supervised) feature in Europe and China, with the goal of launching the service in those regions soon. Additionally, Musk mentioned that the company is working on a new version of its Optimus humanoid robot. “We have done what we said we were going to do,” Musk stated. “That doesn’t mean we’re always on time, but we get it done. And our naysayers are sitting there with egg on their face.” This comment highlighted Musk’s determination to move forward with his vision for autonomous technology, even as Tesla’s current self-driving capabilities face scrutiny. In Austin, Tesla’s robotaxi service includes safety monitors seated in the passenger area with access to a kill switch, a feature that Waymo, a competitor, does not require for its commercial robotaxi operations. Tesla also lacks the necessary permits to operate a robotaxi business in California, and its vehicles have been flagged for several minor safety issues, including instances of phantom braking and driving on the wrong side of the road during the early stages of deployment. Musk reiterated his belief that Tesla is being overly cautious in rolling out its technology, but he also made bold, forward-looking statements typical of his leadership style. He claimed that 50 percent of the U.S. population would have access to Tesla’s robotaxis by the end of the year and predicted that by the end of 2025, Tesla customers would be able to update their vehicles to enable fully autonomous driving without supervision. However, Musk acknowledged that regulatory approvals could pose challenges. While some states require specific permits for autonomous ride-hailing services, there are no federal mandates, and companies often face liability risks if accidents occur. Musk also noted that owners of older Tesla vehicles equipped with Hardware 3 (HW3) would need to upgrade to the newer HW4 or HW5 systems to support the unsupervised version of Full Self-Driving. This hardware upgrade, he said, would likely be expensive for the company. During the call, Musk provided a brief update on the development timeline, stating that the focus is on completing the unsupervised FSD feature for HW4 vehicles before addressing how to handle HW3 models. He did not explicitly advise customers to purchase new vehicles, but the implication was clear. This promise of future autonomy has been a key driver behind Tesla’s soaring valuation over the years. However, it now appears that many current Tesla owners may not be able to access this technology, as the necessary hardware upgrades could be out of reach for a significant portion of the user base. The company’s strategy continues to reflect Musk’s ambitious vision, even as it navigates technical, regulatory, and financial hurdles.