/Tesla%20Inc%20tesla%20by-%20Iv-olga%20via%20Shutterstock(1).jpg)
Tesla’s (TSLA) highly anticipated robotaxi launch in Austin, Texas encountered turbulence as multiple videos surfaced showing the autonomous vehicles violating traffic laws during their first day of commercial operation.
Despite initial investor enthusiasm that sent TSLA stock up 10% before paring gains to 8% on Monday, June 23, concerning footage showed Tesla’s Model Y robotaxis speeding, making improper turns, and briefly driving into lanes for opposing traffic.
In what is perhaps the most troubling incident, captured by former Tesla podcast host Rob Maurer, showed a robotaxi hesitating at an intersection before swerving into an oncoming traffic lane and crossing double-yellow lines to correct course, prompting honking from at least one other driver.
Additional footage documented vehicles exceeding speed limits, including one robotaxi traveling 39 mph in a 35 mph zone.
These violations immediately attracted federal scrutiny. For instance, the National Highway Traffic Safety Administration contacted Tesla to gather additional information about the incidents. NHTSA emphasized that while it doesn't pre-approve autonomous technologies, it will “take any necessary actions to protect road safety” following its assessment. The agency is already investigating the performance of Tesla’s Full Self-Driving system in limited visibility conditions and has previously linked the technology to fatal crashes.
Will Tesla Stock Move Lower This Week?
The timing poses a challenge for Tesla’s autonomous driving ambitions. While CEO Elon Musk celebrated the launch as culminating “a decade of hard work,” the company faces significant competition from Waymo, which has completed over 10 million paid trips and operates 1,500 vehicles across multiple cities. Chinese competitor Baidu’s (BIDU) Apollo Go has surpassed 11 million trips, highlighting Tesla’s relatively late entry into commercial robotaxi services.
Industry experts caution that Tesla’s camera-only approach, while scalable, faces technical hurdles in handling complex “edge cases” that could take years to resolve. The Austin deployment involved fewer than two dozen vehicles operating in a limited geography with safety monitors present, making Musk’s promise of “millions of Teslas operating fully autonomously” by late 2025 appear increasingly ambitious.
For investors, these early implementation challenges raise questions about Tesla’s robotaxi timeline and technological readiness. While the EV maker’s manufacturing scale and software update capabilities provide advantages, the traffic violations and regulatory attention suggest a more cautious approach may be necessary.
What Is the Target Price for TSLA Stock?
Tesla continues to face multiple headwinds in 2025, including rising competition, higher interest rates, and sluggish consumer demand. Analysts expect the EV giant to report revenue of $97.5 billion in 2025, compared to $97.7 billion in 2024. Its adjusted earnings per share are also forecast to narrow by 21% year-over-year to $1.90 in 2025. However, Wall Street estimates revenue to soar to $141 billion in 2027 with adjusted earnings per share of $3.71.
Out of the 41 analysts tracking TSLA stock, 14 recommend “Strong Buy,” two recommend “Moderate Buy,” 15 recommend “Hold,” and 10 recommend “Strong Sell.” The average target price for TSLA stock is $292, roughly 10% below its current stock price.
The bull case for TSLA stock remains intact, given Tesla’s broader leadership in the EV sector. Still, the robotaxi narrative, long considered a key valuation driver, faces near-term headwinds that could temper investor expectations and delay the autonomous driving revenue opportunity that many shareholders have been anticipating.
