
Tesla recently gave select locations the opportunity to try out its new robotaxi service. This month, Austin, Texas, saw the first customers use the service, with Tesla trying to pave the way for the future where autonomous rides could be everywhere.
However, right after the service was launched, many reports on social media surfaced, showcasing the self-driving Tesla vehicles violating traffic laws and potentially creating hazards for other drivers. Quickly, NHTSA officials started looking into these reports.
What Went Wrong?

Videos from multiple sources have documented Tesla’s first steps toward true autonomous taxis, but these videos showed mistakes that a rational driver would never have made, showcasing major hiccups in the service.
Currently, the NHTSA is investigating reports of the robotaxis entering oncoming lanes, stopping for no reason, and erratically breaking.
Phantom Breaking

People observing the autonomous Teslas in Austin saw several instances of vehicles stopping unexpectedly and “phantom breaking.” This happened twice while passing police vehicles, despite there being no hazard or visible obstruction on the road.
Because this happened without warning, passengers were jostled, raising important questions about how reliable the cars were and how safe they were for the safety of riders.
Other Driving Errors

There are other accounts of the vehicles making traffic infractions, such as driving over speed limits or dropping off passengers in locations that weren’t safe, like in the middle of the road or intersections, showing there is much room for improvement.
These vehicles not being able to follow some basic rules of the road have raised concerns about the safety of other drivers and passengers using the service.
National Highway Traffic Safety Administration Investigates

The NHTSA was quickly notified of all the infractions that occurred this month and has reached out to Tesla to gather essential information for an investigation.
While no formal investigation has been announced by the NHTSA, gathering important data will provide insights into the circumstances, and the agency will undertake measures if they are deemed necessary.
Tesla’s History

This isn’t Tesla’s first trial with autonomous driving. In recent years, Tesla owners have had access to the company’s Full Self-Driving software, which allows its drivers to essentially let the vehicle drive for them.
This software has also been linked to various accidents and is already under investigation by the NHTSA. Even the Department of Justice and California DMV have had their eyes on Tesla’s autonomous technology.
Public Opinion

The claim that Tesla vehicles can drive themselves, eliminating the need for human driving and, importantly, human error, is, on paper, an amazing innovation. However, there are mixed reactions to both the technology and the recent incidents with the robotaxi service.
For those who experienced no hiccups, the service was praised. However, with the volume of reports, it’s clear that the technology is not refined as much as it could be, and even supporters have admitted this.
Market Impact

As with any big innovation in a business, Tesla’s stock went up by 8% after its announcement of the service, gripping investors. However, after incident reports and federal agencies took notice, the shares dropped by 2%.
This highlights how every major announcement and hiccup within Tesla is scrutinized by investors and has market impacts.
What’s Next?

In spite of reports and viral videos, Tesla has made a public statement. However, robotaxis has still been seen operating in Austin, Texas, and if Tesla continues with its plans, these autonomous vehicles should expand, either in number or in new territories.
Police and other city officials are communicating with Tesla amid safety concerns, but the future of these autonomous vehicles will hinge on what federal actions are taken. If deemed too unsafe, Tesla might have to stop its testing early, losing out on valuable data that could make this service more refined in the future.
A Hard Reality

While the prospect of self-driving cars is one that millions would want to see, the hard reality is that Tesla’s self-driving vehicles do not seem ready just yet.
In the future, we could see this become a true service. However, with federal agencies already scrutinizing it, the company may have to adhere to future policies revolving around autonomous vehicles.