Tesla's Robotaxi Launch Nears but is it Truly Driverless-Ready?

Core Viewpoint - Tesla is preparing to launch its robotaxi service next month, utilizing its Full Self-Driving (FSD) software for driverless rides [1] Group 1: Tesla's Robotaxi Service - The robotaxi service will allow users to book driverless rides through Tesla's app, marking a significant step towards fully autonomous transportation [1] - The National Highway Traffic Safety Administration (NHTSA) has initiated an investigation into Tesla's FSD system, focusing on its performance in challenging driving conditions [2][3] - Tesla has conducted supervised testing of the robotaxi service with employees, but the public rollout is expected to be fully autonomous without a backup driver [3] Group 2: Regulatory Scrutiny - NHTSA has requested detailed information from Tesla regarding the readiness of its vehicles for unsupervised operation, with a deadline set for June 19 [3] - Non-compliance with NHTSA's requests could result in daily fines for Tesla [3] Group 3: Market Competition - Competitors like Alphabet's Waymo and Baidu are already ahead in the robotaxi market, with Waymo operating commercial services in four U.S. cities and providing over 250,000 paid rides weekly [5][6] - Baidu's Apollo Go service is expanding in China and plans to test in Europe by the end of 2025, indicating strong competition for Tesla [7] Group 4: Tesla's Financial Performance - Tesla shares have declined approximately 17% year-to-date, slightly better than the industry's 19% decline [10] - The company's forward price-to-sales ratio stands at 10.21, which is above both the industry average and its own five-year average, indicating potential overvaluation [11] - The Zacks Consensus Estimate for Tesla's earnings has been trending downward over the past 60 days, reflecting negative market sentiment [13]