Tesla Inc. is facing increasing scrutiny as it approaches its self-imposed deadline. This June, the company hopes to roll out its driverless ride-hailing service in Austin, Texas. This much-expected milestone comes as the company’s stock value has recently crashed. All the while, political push back against its new CEO, Elon Musk, grows stronger. Since at least 2016, Musk has been misleading investors by claiming Teslas will soon be fully autonomous robotaxis. To make this transformation possible, however, there’s one essential software update that needs to occur. Skepticism is still the order of the day among many tech experts about the maturity of Tesla’s Full Self-Driving (FSD) technology.
Tesla’s FSD Technology Faces Major Challenges
The hype around Tesla’s highly marketed, partially automated driving systems still have some loyal fanbase. On a recent epic cross-city LA short drive, automotive consultant Guy Mangiamele commented because of the state of artistry that FSD covered. He gave credit where credit is due and recognized that their system works really well in a lot of spaces. Nonetheless, he did sound serious alarm bells about its reliability. “The times that it trips up, you could kill somebody or you could hurt yourself,” he said.
Safety experts have identified major flaws in Tesla’s FSD. Sam Abuelsamid, Vice President of Market Research at Telemetry, highlighted that the technology can “often work really well, particularly in daytime conditions,” but it can fail unexpectedly in previously navigated scenarios. These inconsistencies are deeply concerning in the face of claims about the safety and readiness of FSD for unsupervised use.
Tesla’s Financial Troubles
Tesla’s share price has cratered, down 36% in Q1 of 2025. That’s the biggest percentage drop since Q3 2022 and the third-largest quarterly plunge since the company went public in June 2010. This decline matches up with their most recent delivery report indicating 336,681 vehicle deliveries over that same time span. That’s a pretty big 13% cut from last year. In this context, the company’s continued decline in deliveries has raised new red flags over the company’s long-term prospects and even survival as a going concern.
Adding to the turmoil, recent revelations have surfaced regarding Tesla’s standard Autopilot and premium FSD systems being involved in incidents resulting in injuries and fatalities. This change has caused increased scrutiny as well from regulators and the public. Furthermore, Musk’s controversial activities, including his association with the cryptocurrency DOGE and his political endorsements—specifically of Germany’s far-right AfD party—have drawn significant backlash.
Tesla is under a significant amount of pressure to make improvements its technology. The company is clearly focused on fulfilling on Musk’s overdue obligations to investors. Analysts at Piper Sandler have indicated that upcoming product unveilings and the anticipated robotaxi launch could help restore investor sentiment and potentially lift the company’s share price following disappointing delivery results.
These obstacles have not dampened the spirits of all Tesla owners. Chris Lee, host of the YouTube channel EverydayChris, credited recent advancements in Tesla’s technology. He stated, “It definitely has a ways to go, but the fact that it’s able to go from where it was three years ago to today is insane.”
Tesla’s owner’s manuals serve as a reminder of the technology’s current limitations, instructing users to “keep your hands on the steering wheel at all times” and remain vigilant about road conditions and surrounding traffic. This now cautionary guidance highlights the fundamental requirement for drivers to be in control of the vehicle, even when using highly or fully automated features.
As Tesla prepares for its upcoming launch, many experts continue to express skepticism about FSD’s readiness for widespread deployment without human oversight. Abuelsamid emphasized that there remains “no evidence” suggesting that FSD is nearing readiness for unsupervised operation by the June deadline.
Author’s Opinion
The timeline for Tesla’s robotaxi rollout seems overly optimistic considering the technological challenges and the increasing concerns about safety. While progress has been made, there’s a clear need for more testing and refinement before these vehicles can operate unsupervised. Given the current state of Tesla’s Full Self-Driving system, rushing to meet the June deadline might be premature and dangerous.
Featured image credit: Wikimedia Commons
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