Tesla's robotaxi services

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Tesla's Robotaxi Debut Faces Scrutiny as Road Safety Gets Compromised
ZACKSยท 2025-06-25 15:51
Core Insights - Tesla, Inc. launched robotaxi services in Austin, TX, utilizing 10 to 20 Model Y vehicles equipped with the latest driverless technology and a human valet [1][9] - The launch faced challenges, including vehicles exceeding speed limits and making wrong turns, leading to a formal investigation by the U.S. National Highway Traffic Safety Administration (NHTSA) [2][4][9] - Following the launch, Tesla's stock initially rose by 8% but later retracted by approximately 2% due to emerging safety concerns [3] Company Performance - Tesla's CEO Elon Musk celebrated the launch despite the safety concerns, while NHTSA has not yet commented on vehicle performance under adverse visibility conditions [4] - Tesla currently holds a Zacks Rank of 5 (Strong Sell), indicating a negative outlook compared to other auto stocks [5] Competitor Analysis - Allison Transmission Holdings (ALSN) has a Zacks Rank of 1 (Strong Buy) with a current-year earnings estimate of $8.83 per share, reflecting a 6.26% year-over-year increase [6] - Luminar Technologies (LAZR) and Lucid Group (LCID) both hold a Zacks Rank of 2 (Buy), with Luminar's 2025 loss estimate improving by 53.57% year-over-year [7][8]