TSLA falls becos Robotaxi failure to launch ?

JC888
06-20

Don’t Launch !

Even before my Thu, 19 Jun 2025 post on Tesla has warmed up to Tiger readers, (click here ! for details, Repost to share ok) — along comes a whammy that may blow $Tesla Motors(TSLA)$ off its course. (see below)

A group of Democratic Texas lawmakers have asked TSLA to delay its robotaxi launch in Austin until September 2025.

This is when the new self-driving law starts.

In a letter sent on Wednesday, the Austin-area lawmakers said delaying the launch is best for safety and public trust.

*Note: It seems Mr CEO said the robotaxi launch couldtentatively” happen on Sun, 22 Jun 2025. Looks like the launch isn’t certain. What’s new when it comes to Musk & punctuality, haha !

If Tesla were to go ahead with a June launch, the lawmakers want “detailed info” showing proof, how Tesla will adhere to the new law.

Musk has gambled Tesla’s future, making it dependent on self-driving tech, not just selling more electric cars (even that, it is failing badly).

So far, TSLA has not replied to the letter yet. Also, it is unclear if the request from Democratic lawmakers will matter much, since Republicans control Texas government.

In January 2025, Musk announced TSLA would offer paid robotaxi rides in Austin in June 2025, and it was supposed to be an “unsupervised” robotaxi as well. (see below)

Investors and analysts have been watching Tesla Robotaxi’s development very closely since as the euphoria has helped to push its stock price from $290+ back to $300+.

This is because, as much of Tesla’s stock value comes from hopes for robotaxis and robots, the company has not delivered yet.

Texas Legislation.

Right now, Texas law lets self-driving car companies operate anywhere if they meet registration and insurance rules.

The new law, passed in May 2025 but not yet signed by the governor, will make companies get state permission to operate.

The state could take away permits if a driverless car is unsafe.

Companies must also tell the state how police and first responders should handle the cars in emergencies.

Musk and Tesla have not given many details about the Austin robotaxi launch.

  • What he did share is, it will start with 10 or 20 Model Y cars and only in the safest parts of Austin.

Tesla has not confirm:

  • Who will ride.

  • How much it will cost.

  • Where (exactly) it will operate.

  • How much remote control will be used.

Stock Price Affected?

TSLA’s stock has already shown volatility in response to news related to its Austin robotaxi launch and regulatory developments. (see below)

On 13 Jun 2025, it was reported that Tesla is facing mounting opposition from Texans. (see above)

Public safety advocates and political protesters have expressed their concerns about the robotaxi launch and also it’s safety owing to lack of safety testing results.

With the latest “request for delay” until September 2025, in addition to regulatory pushback, and concurrent production halts, these will definitely exert downward pressures on TSLA.

For instance, TSLA shares fell nearly -4% after reports of a production pause at the Austin facility, and the broader market is watching closely as regulatory and safety concerns mount

Historically, Tesla’s market valuation is closely tied to its autonomous technology ambitions, with much of its premium based on (a) the promise of robotaxis and (b) future revenue from self-driving services.

Regulatory delays or heightened scrutiny can therefore negatively impact investor sentiment and the stock price, as they raise questions about Tesla’s ability to execute on its autonomous vision and manage regulatory risks.

If the delay is perceived as a sign of growing regulatory or public trust challenges, it may lead to further stock weakness or increased volatility.

Stock Movements.

  • Tesla's stock price has rebounded since its YTD low.

  • Nevertheless it remains down about -15% (as of 18 Jun 2025 closing).

  • Reflecting ongoing volatility and mixed analyst sentiment.

  • Immediate resistance is at the $350–$355 range, while key support sits around $330–$315.

For investors, to sell OR not to sell - that is the question !

Remember to check out my other posts. (See below). Help to Repost ok, Thanks.

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  • Do you think TSLA will accede to request and delay the launch to September 2025 ?

  • Do you think TSLA stock price will fall if Robotaxi launch is delayed ?

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