Tesla robotaxis hit Austin streets last week. Early rides for invited customers are underway—but the rollout has raised eyebrows fast.
The fleet is small, fewer than 20 vehicles, and safety monitors still sit shotgun. The cars rely solely on cameras and AI, skipping lidar and radar approaches used by competitors like Waymo.
Videos on social media show Tesla robotaxis making questionable moves—crossing double yellow lines and slamming brakes suddenly in intersections. These clips sparked a Federal safety inquiry, with regulators reaching out to Tesla for info. 
Reactions split sharply. Some see it as proof Musk’s promises on full autonomy are overblown. Others think it might signal a new era, threatening Uber, Lyft, and Waymo.
As one insider put it:
“It’s like a Rorschach test.”
Meanwhile, Tesla prepping for more drama behind the scenes. Sources say Elon Musk is gearing up for another round of layoffs, targeting low performers after a year of executive exits. Production pressure for the Cybercab is also pushing some employees out.
Tesla’s top sales exec Omead Afshar, known Musk ally, reportedly lost his job this week amid these changes.
On the deals front, Uber co-founder Travis Kalanick is plotting to buy the U.S. arm of Chinese self-driving startup Pony AI, possibly with Uber’s backing. Pony’s U.S. operations have been for sale due to national security concerns.
Other recent raises:
- Nascent Materials scored $2.3M for cheaper LFP battery cathodes.
- Indian drone startup Raphe mPhibr raised $100M in Series B.
In regulatory news, the National Highway Traffic Safety Administration has grilled Ford over its BlueCruise hands-free system following two fatal crashes.
Autonomous vehicle partnerships continue to grow. Kodiak Robotics teamed with Berlin-based remote driving startup Vay. Waymo and Uber expanded “Waymo on Uber” to Atlanta. Plus, Uber Eats launched sidewalk delivery bots there with publicly traded Serve Robotics.
Redwood Materials launched an energy storage line using recycled EV batteries, focusing first on AI data centers.
Rivian cut 140 jobs ahead of the 2026 launch of a cheaper SUV, R2.
Intel dumped its automotive architecture and AI chip business, signaling a retreat from car tech.
The robotaxi race is on, but Tesla has plenty to prove—and the stakes are sky high.
