Since the year began, Tesla (TSLA) fans and investors have been looking forward to a major event. Some experts feel it could be a significant catalyst for share prices.
The former electric vehicle (EV) leader definitely needs the momentum. Despite some recent growth, TSLA stock is still down more than 8% year-to-date (YTD), and trading has been mostly volatile. This is primarily due to declining sales, often attributed to polarizing actions from CEO Elon Musk.
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Over the past month, Tesla reported disappointing deliveries for Q1 and even worse earnings, which showed just how difficult the company’s road to recovery will be. Consumer sentiment toward the company and its leader in both the U.S. and Europe has plunged, but last week, investors learned that sales in China have declined as well.
Tesla’s outlook appears quite grim, but recent reports suggest that it could be about to get worse.
Elon Musk and Tesla are planning something big that may disappoint both fans and investors.
Image source: Apu Gomes/Getty Images
Tesla enthusiasts might be on the verge of a major letdown
In December 2024, Tesla revealed that in 2025, it planned on delivering something that its fans have been eagerly awaiting for years. It would be rolling out driverless robotaxis in a major U.S. city, effectively helping usher in a new era of transportation.
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This announcement came with a major caveat, though. While the Tesla robotaxi would finally be making its debut on public roads, it would still come with a remote human operator to assist with potential problems. Experts have agreed that, therefore, these cars shouldn’t be considered fully “self-driving.”
Fans of the Tesla brand don’t seem to care about this technicality, but soon, that may be the least of their worries. On the Q1 earnings call, Musk stated that Tesla expects to offer autonomous rides in Austin, Texas, in June 2025, but a recent report from The Information calls that into question.
The outlet reveals that despite its claims that the June 2025 launch is still on track as of April 2025, Tesla had not actually conducted any driverless ride tests, according to an “engineer close to the testing and a former employee.”
Sherwood News provides further context on Tesla’s lack of robotaxi progress, stating:
“In April, Tesla announced that a very limited set of people — Tesla employees in the Bay Area and Austin — could get a ride in the company’s robotaxis…with a person sitting in the passenger seat. But with its launch just weeks away, there’s no evidence that the company has conducted any ‘unsupervised, no one in the car’ rides yet.”
More Tesla News:
Tesla faces big threat from rivals in key marketElon Musk’s robotaxi ambitions hit with major roadblockTesla decision reveals a major demand problem
That suggests two possible scenarios, and neither one is good for Tesla.
Either the company will end up pushing back its robotaxi debut to conduct proper driverless ride tests, or the planned June launch will be underwhelming, as it won’t feature the fully self-driving cars that Tesla enthusiasts are picturing, leading to inevitable disappointment.
The road ahead looks rocky for Tesla, driverless or not
If the Tesla robotaxi launch is pushed back, it wouldn’t be the first time that the company has made its fans wait. The company pushed back the launch of the Cybertruck multiple times due to production difficulties, only to learn that demand for the futuristic vehicle simply wouldn’t be as high as anticipated.
Related: Elon Musk may be headed for major legal trouble
In other cases, the company has scrapped products that customers spent years waiting for. Musk ultimately decided not to move forward with the planned $25,000 Tesla EV that could have made his cars accessible to a new group of consumers, opting instead to focus on the company’s self-driving endeavors.
Now, Tesla has a lot riding on the robotaxi launch, as it could provide a much-needed catalyst for TSLA stock. However, if the claims made by The Information’s source are true, it seems increasingly less likely the company will be able to roll out driverless cars that can provide safe rides to customers.
The future appears highly uncertain for Tesla stock, just as it has for months. The next big catalyst may not be what investors and fans are hoping for. If it isn’t, TSLA stock will likely have an even more difficult time making up the ground it has lost this year.
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