Democratic Texas lawmakers are urging Tesla (Nasdaq: TSLA) to delay its planned robotaxi launch until September, potentially providing CEO Elon Musk with political cover to postpone a rollout that faces mounting technical and safety questions.
Seven Austin-area legislators sent a letter Wednesday asking Tesla to postpone Sunday’s scheduled launch until new state autonomous vehicle regulations take effect in September. The opposition comes as recent safety demonstrations suggest Tesla’s technology may not be ready for unsupervised public deployment.
Musk has repeatedly missed self-imposed deadlines for autonomous driving, promising in 2019 that Tesla would have 1 million robotaxis on roads by 2020. The regulatory pressure could offer Musk a way to delay without acknowledging technical readiness issues that might hurt Tesla’s stock price.
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Also read: Tesla Targets June 12 Austin Robotaxi Launch Amid Safety, Regulatory Concerns
A recent demonstration by tech safety group The Dawn Project showed a Tesla in Full Self-Driving mode striking a child-sized mannequin five times during tests simulating a child running into the street from a stopped school bus. The National Highway Traffic Safety Administration has been investigating Tesla’s autonomous software since October and recently demanded details about how robotaxis will handle emergencies.
Also read: This Is What Would Slam the Brakes on Tesla’s Robotaxi Rollout Plan
The new Texas regulations would impose strict requirements that could derail Tesla’s current approach entirely. Companies would need to test “on public roadways with a human operator for not less than three years” before transporting passengers and add lidar and radar systems to Tesla’s camera-only technology.
Under these rules, Tesla would be restricted to employee-only testing for approximately four years — a timeline that contradicts Musk’s promise of rapid expansion to other states this year.
Current Texas law allows autonomous vehicle companies to operate with basic registration and insurance requirements, which Musk chose specifically for Tesla’s launch. The CEO has shifted the company’s focus from building cheaper electric vehicles to autonomous services, with much of Tesla’s stock value depending on robotaxi success.
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Tesla shares have declined about 20% year-to-date. The Austin rollout was planned to start with 10-20 Model Y vehicles in geofenced areas under remote supervision before scaling to 1,000 vehicles within months.
Also read: Tesla Faces Mounting Regulatory Pressure on Self-Driving Technology Ahead of Robotaxi Launch
Musk said Tuesday the launch would happen “tentatively” on June 22, cautioning the date could shift because Tesla is “being super paranoid about safety.” Tesla did not respond to requests for comment about whether the regulatory opposition might influence timing.
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