Tesla CEO Elon Musk unveiled the company’s new robotaxis in October 2024, detailing his plans to bring driverless ride-hailing services to Texas and California in 2025.
The flashy event revealed the “Cybercab,” a fully autonomous two-door, two-seater vehicle without pedals or a steering wheel that uses artificial intelligence (AI) and cameras to navigate the roads.
Experts and investors are skeptical about Tesla’s ability to launch a fully autonomous taxi so soon. The highly anticipated Cybertruck took years to manufacture, and Tesla competitors Amazon, Google, and General Motors already operate robotaxis. Those companies also conducted months or years of testing before launching paid services.
Musk promised robotaxis on Texas and California roads in 2025 but noted that Cybercab production would likely begin in 2026. He previously claimed that Tesla would launch an FSD car in 2021 and have one million taxis in testing without passengers by the end of 2020. Neither happened.
Autonomous vehicles (AVs) face challenging regulatory hurdles, with California’s requirements more stringent than Texas’. The California Public Utilities Commission (CPUC), which regulates ride-hailing services, issued Tesla an AV testing permit in 2019 requiring a human driver onboard. Tesla’s robotaxis are being tested by employees in San Francisco, but the company has not applied for a driverless testing permit. Employee testing doesn’t require a permit because employees aren’t paying passengers.
How Does Texas Regulate AVs?
Texas became a major player in the AV industry in 2017 with the passage of Texas Bill 2205, allowing autonomous vehicles on public roads as long as they follow traffic laws, have recording devices onboard, and comply with federal safety regulations. At least 15 companies currently operate AVs in Texas.
The Texas Senate Transportation Committee (TSTC) met in September with industry representatives to update current AV regulations in Texas, particularly for vehicles transporting goods or passengers.
Suggestions included requiring permits and registration through the state DMV before deploying driverless vehicles and allowing individual vehicles with problems to be easily taken off the road.
AVs are regulated by the state, not individual cities.
New regulations must be approved by the state legislature and governor, but it’s clear that Texas remains committed to supporting AV growth.
Tesla’s Ongoing Battles With the NHTSA
Tesla’s driver assistance systems are facing scrutiny from the National Highway Traffic Safety Administration (NHTSA) and the U.S. Dept. of Justice for allegedly overstating their safety.
One system, Autopilot, includes features like automatic lane-changing and cruise control. Tesla claims the FSD upgrade can “drive itself almost anywhere with minimal driver intervention.”
The NHTSA opened an investigation in October 2024 into 2.4 million Tesla vehicles with FSD software after four crashes, including one fatal pedestrian accident. These incidents occurred in reduced visibility conditions such as fog and glare.
The NHTSA may impose a recall if they decide these vehicles pose an unreasonable safety risk. They’ve asked Tesla to disclose similar incidents and any updates to the FSD system affecting operations in these conditions.
Unlike competitors who use radar and lidar sensors, Tesla employs a “camera-only” approach without backup sensors. A 2018 NHTSA investigation into 956 crashes (29 fatal) involving Tesla vehicles, completed in 2023, found driver inattention and technology failures as key causes. Many crashes occurred after dark, with Autopilot failing to recognize safety features like flares and cones.
The report criticized Tesla for making drivers believe they had more control than they actually did, leading to complacency and delayed reactions. Tesla argues it warns users to keep their hands on the wheel and eyes on the road. The report also noted that using the term “Autopilot” misleads drivers into thinking they don’t have to be in control; competitors use terms like “team” and “assist” to imply that drivers must still be actively engaged.
In December 2023, Tesla responded to the 2018 investigation by recalling over 2 million vehicles to install new Autopilot safeguards, but the NHTSA is still deciding whether that recall was sufficient.
The robotaxi’s launch will require NHTSA approval.
Lawsuits Add to Tesla’s Headaches
Despite Musk’s optimism about its robotaxis, Tesla faces over a dozen lawsuits alleging misleading marketing and promises about Autopilot. These began in 2018 after Apple engineer Walter Huang died when his Tesla crashed into a freeway median while Autopilot was engaged. Tesla settled the case before trial.
More recent lawsuits involve injured third parties rather than passengers, allowing Tesla to shift liability by citing its user manuals’ instructions to drivers to stay alert. An upcoming trial in June 2025 concerns a California freeway crash where Autopilot failed to avoid hitting a motorcyclist, crashing into the car in front of the motorcyclist after sending him airborne. A March 2025 trial involves a Florida crash where a distracted Tesla driver blew through an intersection, killing a bystander.
Prosecutors allege Tesla used motorists and pedestrians as unwitting test subjects during FSD Beta testing. Though Beta testing has been completed, experts say it remains unreliable and notes that it has even failed California DMV road tests.
Texas Car Crashes With AVs
Driverless cars are expected to constitute one-tenth of U.S. vehicles within seven years, with many operating in Texas. Tesla’s Austin headquarters and Texas’ supportive regulations make the state a hub for AVs, ensuring that Texas drivers will be interacting with more driverless vehicles in the years to come.
Lawmakers highlight the economic benefits and potential safety advantages of reducing human error, but residents are concerned about their lack of control over AV testing or deployment in individual cities.
Standards for liability in AV-related crashes are still being determined. If you’re involved in an accident involving a driverless vehicle, you need to consult an experienced Texas car crash attorney.
The Cochran Firm Texas has offices in Ft. Worth, South Houston, Dallas, and Tulsa. We have been handling Texas car crash cases for over 50 years and can offer you a free case consultation. Use our online contact form or call toll-free at 1-866-892-6148 to learn more about your legal options.
At Cochran Texas, we understand that needing legal help can be scary. It doesn’t have to be. We are a trusted leader in the legal profession and in our community. We know you are more than a case number. We get to know you as a person. This allows us to offer a balanced and thoughtful approach to giving you the best possible legal representation. Our mission is to protect the legal rights of ALL people in our community. No matter your race, gender, background or income level you have a right to skilled legal help. Call us at 800-843-3476.
Comments for this article are closed.