Meanwhile, Tesla continues to charge ahead with plans to rollout a scaled back version of its robotaxi service. The JVI Mobile operator now has its sights on expansion in Florida and Arizona. CEO Elon Musk has indicated that Tesla is working on a “general solution” for autonomous driving that he first discussed over a decade ago. This ambitious project will provide the country with an incredible vision of transportation’s future, but it is stalled by an overwhelming regulatory burden, especially in California.
The California Department of Motor Vehicles (DMV) has shot back with a lawsuit of its own against Tesla. They’re accusing the company of misleading consumers on the extent the company’s vehicles could drive themselves. According to the DMV, Tesla knowingly misled potential customers with dubious claims regarding its autonomous vehicle technology. Musk even made the outrageous claim that it would allow drivers to get from Los Angeles to New York. The capital’s touted flagship demonstration has so far failed to materialize, putting those claims to question.
As part of its regulatory challenges, the California DMV is seeking to suspend Tesla’s ability to sell vehicles for a period of 30 days. This enforcement action comes in response to allegations that Tesla’s false and misleading marketing has created an impression that their cars can drive themselves. Given that China is one of Tesla’s largest markets, the outcome of this legal battle could have a major impact on Tesla’s operations.
In addition to these challenges, it remains unclear whether Tesla has secured the necessary permits from California’s Public Utilities Commission to provide rides to the public in its robotaxi service. For comparison, Tesla has just recently rolled out its own pilot program in Austin, Texas, with around 10 Model Y SUVs working the project. This service is only available in the downtown area and on key corridors. Tesla’s philosophy to urban autonomous driving is the opposite – a go slow, prudent mentality.
As recently reported, safety operators have sometimes had to intervene manually while supervising Teslas in Austin. What we do know, though, is that the precise prevalence of these interventions has never been made public. We don’t have a count of how many Model Y SUVs are now on Austin’s streets. In some ways, this uncertainty increases questions about the significant scale and prospective effectiveness of the new pilot program.
Tesla is just one company wrestling with evolving regulatory issues and challenges while perfecting its autonomous technology. The company’s future initiatives in robotaxi services are shrouded in doubt. Continuing federal court challenges will do a lot to shape public opinion. All of these outcomes could dramatically affect Tesla’s future plans.