Electric vehicle giant Tesla has recently been making headlines, possibly more than ever before. With CEO Elon Musk’s controversial involvement with the Trump Administration, the significant number of recalls of the Cybertrucks, and news of more red tape around Tesla’s ‘Robotaxis’ and autonomous driving technology, the company has had its fair share of publicity lately. Recently, reports have emerged that come June 12, Tesla will finally be releasing their Robotaxis.
Tesla continues to make headlines
This year, with the election of the Trump Administration for President Donald Trump’s second non-consecutive term, Tesla has seen significant controversy due to CEO Musk’s involvement has head of the new Department of Government Efficiency (DOGE), an external advisory body brought in by the Trump Administration to make recommendations on how to reduce unnecessary federal spending.
As part of these recommendations, DOGE has made sweeping cuts to several welfare programs, including USAID, as well as cut back on thousands of federal employees’ jobs. Additionally, Tesla’s Cybertrucks continue to be subject to vehicle recalls. Within the two years since the models have been released, the National Highway Traffic Safety Administration (NHTSA) has announced eight recalls for owners over problems with the vehicles.
However, Musk has recently taken a step back from DOGE. This comes with his 130-day mandate as a federal employee expiring at the end of May. Musk has reportedly also received increased pressure from shareholders to take a step back from political involvements due to Tesla’s share value plummeting, with Musk’s political role looking increasingly like a liability for the company.
“I expect to remain a friend and an adviser, and certainly, if there’s anything the president wants me to do, I’m at the president’s service,” says Musk.
New Tesla model in this city
In other news, Tesla has reportedly been targeting June 12 as the Robotaxi service launch date in Austin, Texas. According to reports by Bloomberg, the company is set to finally kick off the driverless ride-hailing service, as relayed by a source close to Tesla. The launch of the service marks a significant pivot in Tesla’s journey, where they begin to transition their focus from pioneering electrical vehicle technology to autonomous driving technology.
Musk’s decision to launch the service first in Austin, Texas, may be due to the state’s relatively more relaxed rules around autonomous driving. Tesla has faced significant backlash with regards to investigations by the NHTSA over road accidents related to the technology. In addition, the city has already seen the rollout of similar services by Waymo and Jaguar. The company has yet to release specifics on how the service is intended to operate.
“AVs must adhere to the same regulations as cars in which a driver is present (e.g., insurance, registration). State law also requires AVs to comply with all traffic laws,” says Texas state law on autonomous vehicles
Tesla pivots direction amidst competition
When Tesla first began producing electric vehicles, they were one of the first pioneers to do so. They can largely be attributed to taking electric vehicles from being seen as alternative and fringe to positioning them as luxurious and desirable. Now, however, Tesla must find a new niche with nearly every major automobile company now offering their own hybrid and electrical technology.
Tesla’s new focus on autonomous vehicle technology is not met without competition, however. Significant innovative efforts are being seen in China, particularly from BYD, which has its own autonomous vehicle technology that rivals Tesla’s. While still ahead of the game compared to other automobile companies, Tesla will have to compete harder than it did with the initial electric engine technology revolution, particularly due to the damage control needed from a public relations perspective for the company.
