The Democratic legislators from Texas have requested in writing that Tesla delay the launch of their robotaxi service, which was highly anticipated.
Legislators are asking the giant electric car company to postpone the launch until September when the new law on autonomous driving will be in effect. They cite concerns about public safety, and a need to gain public trust.
The group of Austin area lawmakers wrote a letter on Wednesday arguing that “delaying” the launch, as Tesla CEO Elon had “tentatively suggested it could be as soon as Sunday,” “is both in the public’s best interests and in building trust in Tesla operations.”
The robotaxi service must be aligned with future state regulations.
If Tesla chooses to launch its product this month and predates the new legislation, lawmakers will ask the company for “detailed” information on how it intends to adhere to the state’s new laws once the vehicle is in operation.
Tesla has not responded to an immediate request for a comment about the letter from lawmakers.
The timing of this request is crucial for Tesla.
Elon Musk staked his company’s success on its self-driving tech last year. This was a sign of a shift in strategy away from pursuing rapid sales growth for electric vehicles.
Investors and analysts have been closely monitoring the impending Austin Robotaxi rollout. Many attribute part of Tesla’s current stock valuation to high expectations for its robotaxi service and humanoid robotics, which are yet to be delivered.
How to navigate a changing legal landscape in Texas
This request should be viewed in its political and legal context.
In Texas, where Republicans hold the majority in both chambers of legislature and control the state’s governorship, it is unclear what influence a Democratic legislator’s letter will have.
According to current Texas laws, companies that manufacture autonomous vehicles are allowed to use their vehicles in any part of the state as long as they meet the basic requirements for registration and insurance.
This is about to change with the passage of new legislation in Texas last month. However, the Governor has yet to sign it.
The new law will require, for the very first time, that autonomous vehicle companies apply to the state for a specific license to operate.
The new law would give state authorities the right to cancel permits for driverless vehicles if the authority deems that the vehicle “endangers public safety.”
Tesla and other companies would also be required to give the state comprehensive information about how first responders and police can interact and manage autonomous vehicles during an emergency.
Tesla Robotaxi: Scant Details
Elon Musk announced that Tesla will offer “autonomous rides for money” in Austin in June. Since then, there have been few details on the launch.
Musk said that the first rollout of the Model Y would start with a fleet of only 10 to 20 vehicles. The company will initially be operating in the “safest parts” of Austin.
Musk and Tesla have not disclosed key details about the operation, such as the first passengers, the way Tesla charges for rides, which areas in Austin the service will cover, or the extent to which the cars will be monitored remotely.
The lack of transparency is likely to contribute to lawmakers calling for a cautious, legally-aligned approach.
This is a Red Light for Tesla Robotaxis. Texas Democrats call for launch stop may change as new information becomes available