FILE PHOTO: Tesla Model 3 vehicle self driving in California - Tesla is making a risky bet if it shifts efforts on its small-car vehicle platform to robotaxis as the successful introduction of vehicles that drive themselves is in the distant future, and the technology faces engineering and regulatory hurdles.
The development of autonomous vehicles has not been smooth. In a recent example, autonomous driving software firm Ghost Autonomy on Wednesday closed worldwide operations, citing the uncertain path to profits. Some Tesla investors and analysts said valuing a robotaxi business for Tesla is much more difficult than a low-cost car.
The recall followed a U.S. National Highway Traffic Administration probe of crashes involving the technology that raised concerns about insufficient safeguards to combat inattentive drivers. The extra scrutiny Tesla's driver-assistance system faces follows a “multi-year string of unfulfilled promises and highly questionable statements coming from Tesla and its CEO about the capabilities and near-term timelines of automated driving,” he said.
But if Tesla can succeed, it would open the industry to more consumers than those who can currently afford pricier Teslas, industry officials said.