Tesla Advances Robotaxi Service Amid Regulatory Hurdles
Tesla (NASDAQ: TSLA) is set to begin production of its autonomous vehicle, Cybercab, this year as part of its expanding robotaxi service, aimed at launching in seven new cities, including Las Vegas and Miami, by 2026. Currently, about 1.1 million Tesla owners use the full-self-driving (FSD) feature, reflecting a 38% year-over-year increase. The company’s stock is approximately 15% below its all-time high despite weak automotive revenue.
However, the growth of Tesla’s robotaxi fleet faces a significant challenge: the U.S. National Highway Traffic Safety Administration (NHTSA) restricts annual sales of vehicles without steering wheels to just 2,500 units. While the NHTSA is considering updating these regulations, any delays could hamper production plans and future stock performance. Analysts expect Tesla’s earnings to increase at a 35% annual rate as higher margins from the robotaxi service are realized.
