Tesla’s robotaxi falls short with long waits and stalled rides

Tesla’s robotaxi program, introduced in Austin in July 2025, has struggled to meet ambitious goals set by CEO Elon Musk. During Tesla’s earnings call that month, Musk announced plans to expand the service to California, Nevada, Arizona, and Florida, aiming for autonomous ride-hailing in half the U.S. population by year’s end. Nearly a year later, Tesla operates only 59 vehicles across three Texas cities—far below Musk’s earlier claim of 500+ cars in Austin alone by late 2025. The limited fleet size, disclosed after new regulations forced transparency, highlights the gap between Tesla’s hype and execution. Musk has repeatedly overpromised on futuristic ventures, including humanoid robots and semiconductor factories, while core businesses like car sales decline. Robotaxis were expected to drive growth, but the service remains plagued by long wait times, incorrect pickups/drop-offs, and occasional human oversight. Tesla projects profitability for the robotaxi division no earlier than 2027. Analysts describe the progress as ‘well short of even our very bearish outlook.’ Garrett Nelson of CFRA noted Tesla’s history of missed deadlines, calling the robotaxi rollout another example. The company has reported 17 incidents to the National Highway Traffic Safety Administration, including two low-speed crashes caused by remote operators. Regulatory risks loom large, as seen with Cruise’s shutdown after a pedestrian collision in 2023. Tesla’s cautious approach stems from the ‘extremely difficult technological challenge’ of autonomous ride-hailing, balancing safety with scalability. While rivals like Waymo have expanded more steadily in Texas, Tesla’s slow progress raises questions about its ability to deliver on Musk’s vision. The company’s market value has surged despite skepticism, relying on long-term promises of self-driving cars and robotics—none of which have yet translated into near-term revenue.