Barclays Cautions on Tesla's Robotaxi, Citing Regulatory Hurdles

Barclays has recently assigned a "hold" rating to Tesla, Inc. (TSLA.US), while anticipating that the company's autonomous ride-hailing service, Robotaxi, will encounter a prolonged regulatory approval process. Analysts from the firm noted that in California, the approval process for a "true" Robotaxi service could be extensive, requiring Tesla to secure a series of permits before offering the service. Additionally, it was reported that Tesla's interactions with California regulatory bodies have been more limited than generally perceived, and the company's promotional efforts for Robotaxi have also been more constrained than anticipated.

In June of this year, Tesla launched its Robotaxi service in Austin, Texas, beginning to transport its first passengers. Initially, this pilot service was available to a small group of users, with a limited fleet of vehicles. Over the past few months, Tesla has gradually expanded the number of users eligible for the Robotaxi trial and the geographical areas covered by the service. Beyond Texas, Tesla has also introduced Robotaxi services in the San Francisco Bay Area of California, though with some differences. In Texas, the safety monitoring personnel sit in the passenger seat, while in California, they occupy the driver's seat.

According to a message posted by Tesla's Chief Executive Officer on social media, the company's Robotaxi service in Austin is scheduled to open to the public in September. Notably, Tesla has already obtained the necessary permits and regulatory approvals from Texas authorities to expand its statewide operations, allowing it to function as a licensed transportation network company until August 2026.