Tesla Inc.’s latest quarterly safety report on its Autopilot system has sparked fresh debate in the autonomous vehicle sector, highlighting a troubling trend in crash rates that could undermine confidence in the company’s push toward fully driverless technology. The report, released for the second quarter of 2025, reveals that vehicles using Autopilot experienced crashes every 6.69 million miles, a 2.8% decline from the 6.88 million miles recorded in the same period last year. This metric, which Tesla uses to tout the superiority of its driver-assist features over human-driven averages, is now drawing criticism for potentially masking deeper issues.

Experts and online commentators have pointed out that Tesla’s data might be selectively presented, focusing only on miles between crashes while omitting details on crash severity or comparisons to non-Autopilot driving. “Not a fan of the cherry-picked data,” one industry analyst remarked on social media, echoing concerns that the figures don’t fully capture real-world risks. This comes at a pivotal time as Tesla ramps up its robotaxi ambitions, with recent deployments in Texas already under scrutiny from regulators.

Declining Safety Metrics Amid Robotaxi Expansion

The dip in safety performance arrives just months after Tesla’s high-profile robotaxi launch in Austin, where self-driving vehicles began ferrying paying passengers in June 2025. According to a Reuters report, CEO Elon Musk hailed the event as a “culmination of a decade of hard work,” but early incidents, including apparent traffic violations, prompted an investigation by the U.S. National Highway Traffic Safety Administration (NHTSA). Videos shared online showed robotaxis speeding or navigating erratically, raising questions about the readiness of Tesla’s Full Self-Driving (FSD) software.

Industry insiders note that this safety regression could complicate Tesla’s regulatory approvals for broader robotaxi operations. In a separate development, Tesla demonstrated its tech by sending a driverless Model Y from factory to customer, covering 15 miles of varied terrain, as detailed in a TechCrunch article. Yet, such stunts haven’t quelled doubts, especially as rivals like Waymo report stronger safety records with sensor-heavy approaches that Musk has dismissed as a “crutch.”

Competitive Pressures and Regulatory Hurdles

Tesla’s vision-only strategy, relying on cameras and AI rather than lidar or radar, is increasingly seen as a vulnerability. A Reuters analysis from June 2025 highlights how Chinese giants like BYD are surging ahead in affordable self-driving tech, potentially eroding Tesla’s edge. Musk’s bold claims notwithstanding, survey data shared with WIRED suggests consumer unease with Tesla’s autonomous features, with some users reporting discomfort during tests.

Moreover, U.S. Transportation Secretary Pete Buttigieg has urged caution, reminding FSD users to keep hands on the wheel in a 2023 Yahoo Finance interview, a stance that resonates amid ongoing NHTSA probes. Tesla’s Q2 report also coincides with plans to expand robotaxi testing to new regions, as noted in a July 2025 Yahoo Tech article, but persistent safety lapses could delay these efforts.

Implications for Tesla’s Autonomous Ambitions

For industry observers, the declining miles-between-crashes figure signals broader challenges in scaling AI-driven autonomy. Tesla’s internal data shows Autopilot still outperforms the U.S. average of one crash every 670,000 miles, but critics argue this comparison is flawed, ignoring variables like highway-heavy usage. A Bloomberg report on robotaxi incidents underscores the regulatory spotlight, with NHTSA seeking test rides to evaluate FSD’s real-world viability.

As Tesla eyes driverless operations in California and Texas by 2026, per Musk’s October 2024 announcements in a Yahoo Finance piece, addressing these safety concerns will be crucial. Insiders warn that without transparent, comprehensive reporting, Tesla risks alienating regulators and investors alike, potentially ceding ground to more cautious competitors in the race to dominate autonomous mobility.

Looking Ahead: Balancing Innovation and Safety

The controversy surrounding the Q2 report isn’t isolated; it builds on a pattern of scrutiny, including a rocky FSD rollout that Tesla pulled off earlier than expected, as covered in a July 2025 Yahoo Tech article. With deliveries expected to reflect ongoing demand challenges, per a June 2025 Yahoo Finance update, Musk’s team faces pressure to innovate without compromising safety.

Ultimately, for Tesla to realize its robotaxi vision, it must navigate these hurdles with data-driven improvements and regulatory goodwill. As one expert told Yahoo Tech in the original report, the current trajectory suggests prominent safety concerns that could redefine the company’s path forward.