^{Tesla CEO Elon Musk. Photo: Nora Tam/South China Morning Post via Getty Images}

‍Tesla's Pursuit of Autonomous Ride-Hailing

For nearly a decade, Elon Musk has assured investors that Tesla vehicles are on the brink of achieving full autonomy, transforming them into self-driving robotaxis with a simple software update. Despite these assertions, Tesla's current offering remains a partially automated system known as Full Self-Driving (Supervised) (FSD), which requires active driver supervision. This system utilizes cameras and software to navigate highways and city streets, responding to traffic signals and stop signs. However, Tesla's manuals explicitly caution drivers to remain attentive and keep their hands on the wheel at all times.​

In January 2025, Musk announced plans to launch an unsupervised Full Self-Driving service in Austin, Texas, by June of the same year. This initiative aims to introduce a geofenced autonomous ride-hailing service, similar to those offered by competitors like Waymo . Musk expressed confidence in expanding this service to other regions, including California, later in the year.​

Political Entanglements and Public Backlash

Musk's involvement in political activities has led to significant public backlash against Tesla. As head of the Department of Government Efficiency (DOGE) under President Donald Trump, Musk has overseen extensive government layoffs, totaling approximately 280,000 positions across 27 agencies . These actions have sparked widespread protests and boycotts, with over 1,200 demonstrations organized nationwide against both Trump and Musk .​

The protests have directly impacted Tesla, with demonstrators targeting showrooms across the United States. In cities like New York, Seattle, and Kansas City, groups of up to 100 people have gathered to express their discontent . This public dissent has raised concerns about potential damage to Tesla's reputation and sales figures.​

Financial Implications and Investor Sentiment

Tesla's financial performance has reflected the turbulence surrounding the company. In the first quarter of 2025, Tesla reported approximately 336,681 vehicle deliveries, marking a 13% decline compared to the same period in the previous year . This downturn has been attributed to factors such as political backlash and a stagnant product lineup.​

The company's stock has also experienced significant volatility. Following President Trump's unexpected tariff announcements and subsequent retaliatory measures from China, Tesla's stock declined by 3.7% to $257.46 on April 4, 2025 . Analysts are divided on the impact of Musk's political involvement, with some viewing a potential retreat from political roles as a positive development for Tesla's brand perception and employee morale.​

Outlook for Tesla's Autonomous Initiatives

Despite the ambitious timeline set by Musk, industry experts remain skeptical about the readiness of Tesla's Full Self-Driving technology for unsupervised operation. Sam Abuelsamid, Vice President of Market Research at Telemetry, noted that there is "no evidence" that FSD is close to being ready for unsupervised use by the projected June launch . Concerns persist regarding the system's reliability and safety, especially given ongoing investigations by the National Highway Traffic Safety Administration into Tesla's automated driving technologies.​

As the June deadline approaches, Tesla faces the dual challenge of advancing its autonomous technology to meet regulatory and safety standards while navigating the complexities of public opinion and political associations. The outcome of these efforts will be pivotal in determining Tesla's position in the autonomous vehicle market and its broader corporate reputation.

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