Tesla(US:TSLA) Feng Huang Wang·2025-07-09 05:17Core Viewpoint - Tesla faces significant legal risks associated with its fully autonomous ride-hailing service, particularly regarding liability for accidents involving its self-driving technology [1][3][6]. Liability Risks - Investors are optimistic about Tesla's autonomous taxi service as a new revenue stream, but this introduces unprecedented legal risks related to autonomous driving technology failures [1][2]. - Tesla owners participating in the ride-hailing service may face legal liability, as plaintiffs' lawyers could target them for vehicle maintenance or misrepresentation of vehicle condition [2][5]. Operational Support Concerns - Questions arise about whether Tesla will provide adequate support for vehicle owners in the event of an accident involving its autonomous taxis [3][4]. - Unlike Tesla, Waymo has a clear policy to assume legal responsibility for accidents caused by its autonomous vehicles, including medical compensation for passengers [4][6]. Insurance Challenges - The concept of renting personal vehicles for profit through Tesla's autonomous network presents complexities for insurance coverage, as insurers may be cautious about new and intricate risk profiles [7][8]. - Ensuring that vehicles owned by individual owners are well-maintained before joining the autonomous taxi network is crucial for Tesla's success [7][8]. Cost and Safety Concerns - Tesla claims a cost advantage over Waymo due to its reliance on lower-cost digital cameras, but this could lead to safety criticisms if accidents occur, as it may be perceived that Tesla compromised safety for cost savings [8][9].