Tesla’s Robotaxis Reportedly Sped and Veered Into the Wrong Lanes. Does This Crush the Bull Case for TSLA Stock?

Tesla’s (TSLA) highly anticipated robotaxi launch in Austin, Texas encountered turbulence as multiple videos surfaced showing the autonomous vehicles violating traffic laws during their first day of commercial operation.

Despite initial investor enthusiasm that sent TSLA stock up 10% before paring gains to 8% on Monday, June 23, concerning footage showed Tesla’s Model Y robotaxis speeding, making improper turns, and briefly driving into lanes for opposing traffic.

In what is perhaps the most troubling incident, captured by former Tesla podcast host Rob Maurer, showed a robotaxi hesitating at an intersection before swerving into an oncoming traffic lane and crossing double-yellow lines to correct course, prompting honking from at least one other driver.

Additional footage documented vehicles exceeding speed limits, including one robotaxi traveling 39 mph in a 35 mph zone.

These violations immediately attracted federal scrutiny. For instance, the National Highway Traffic Safety Administration contacted Tesla to gather additional information about the incidents. NHTSA emphasized that while it doesn’t pre-approve autonomous technologies, it will “take any necessary actions to protect road safety” following its assessment. The agency is already investigating the performance of Tesla’s Full Self-Driving system in limited visibility conditions and has previously linked the technology to fatal crashes.

The timing poses a challenge for Tesla’s autonomous driving ambitions. While CEO Elon Musk celebrated the launch as culminating “a decade of hard work,” the company faces significant competition from Waymo, which has completed over 10 million paid trips and operates 1,500 vehicles across multiple cities. Chinese competitor Baidu’s (BIDU) Apollo Go has surpassed 11 million trips, highlighting Tesla’s relatively late entry into commercial robotaxi services.

Industry experts caution that Tesla’s camera-only approach, while scalable, faces technical hurdles in handling complex “edge cases” that could take years to resolve. The Austin deployment involved fewer than two dozen vehicles operating in a limited geography with safety monitors present, making Musk’s promise of “millions of Teslas operating fully autonomously” by late 2025 appear increasingly ambitious.