Elon Musk recently made a bold claim that Tesla’s Robotaxi service will cover half of the US population by the end of the year. This announcement came alongside the release of Tesla’s Q2 2025 financial results, which showed a 23% decrease in earnings due to falling electric vehicle sales and lower margins. Despite this, Tesla’s stock remains stable as Musk promises a return to earnings growth through autonomous driving and humanoid robots.
The Robotaxi service is a significant shift in strategy for Tesla, as it operates as an internal fleet within a geo-fenced area in Austin, Texas. Currently, the service relies on teleoperation and in-car supervisors who have a kill switch at their disposal at all times. While Musk and Ashok Elluswamy, Tesla’s head of self-driving, expressed confidence in expanding the Robotaxi service to the Bay Area, regulatory approval remains a major hurdle.
It’s worth noting that Tesla has not yet applied for permits to operate an autonomous ride-hailing service in California, raising doubts about the feasibility of Musk’s ambitious goal. With only a limited presence in Austin, Texas, Tesla would need to launch in numerous metro areas to cover half of the US population by the end of the year.
The sheer scale of this endeavor makes Musk’s claim seem far-fetched, especially considering the current limitations of Tesla’s autonomous driving technology. As skepticism grows, it’s essential to approach these grand promises with a critical eye. The future of Tesla’s Robotaxi service remains uncertain, but one thing is clear – the stakes are high, and the pressure is on to deliver on these ambitious plans.
