Tesla has toned down its outlook for its robotaxi business after CEO Elon Musk and other executives acknowledged that the rollout is moving more slowly than expected. During the company’s latest earnings call, executives said they are expanding city by city to meet local regulations and address operational challenges before increasing the fleet. The update disappointed investors, sending Tesla shares down 13%, their biggest one-day drop in more than a year.
The company launched its first robotaxi pilot in Austin in 2025 and has since expanded to only a few cities in Texas and Florida, with services still limited to smaller areas. Tesla said it wants to prioritize safety and resolve technical issues before speeding up deployment. While executives described the growth in autonomous driving miles as “exponential,” analysts noted that the company has yet to meet earlier expansion targets.
Tesla said its robotaxis have completed about 2.5 million miles of paid trips, including 380,000 miles without an in-car safety monitor. However, the figures remain far behind Waymo, which has logged more than 220 million autonomous miles. Despite the slower rollout, investors continue to see robotaxis and Tesla’s Optimus humanoid robots as key drivers of the company’s long-term growth.
Related Readings:
