AUSTIN, Texas—In the bustling streets of Austin, Tesla Inc.’s ambitious Robotaxi service, launched with much fanfare in June 2025, has quickly become a flashpoint for debates on autonomous vehicle safety. What began as an invite-only ride-hailing experiment has now reported seven crashes, raising alarms among regulators, industry experts, and the public. Elon Musk, Tesla’s CEO, has touted the service as a leap toward fully autonomous transportation, but a string of incidents—including collisions with fixed objects, backing accidents, and even involvement with cyclists—has cast a shadow over its viability.

According to recent reports, these crashes occurred despite the presence of human safety drivers in every vehicle, highlighting potential flaws in Tesla’s Full Self-Driving (FSD) software. The National Highway Traffic Safety Administration (NHTSA) is investigating, with critics accusing Tesla of downplaying risks to boost investor confidence. As the company prepares to expand the program and potentially remove safety monitors, the stakes couldn’t be higher for the future of self-driving tech.

The Rocky Rollout in Austin

Tesla’s Robotaxi debuted in Austin with a fleet of about two dozen vehicles, initially available only to select users, including pro-Tesla influencers. Early tests revealed a litany of driving mistakes, from speeding and sudden braking to driving over curbs, as detailed in a June 2025 article by Reuters. Videos circulating on social media showed erratic behavior, prompting immediate concerns.

By late June, the first traffic incident was reported, marking the beginning of a troubling pattern. TheStreet noted that the vehicle encountered issues in its inaugural week, including a collision that didn’t involve complex scenarios but rather basic navigation errors. This incident, while minor, underscored the gap between Musk’s promises and real-world performance.

Escalating Incidents and Cover-Up Allegations

As summer progressed, crashes accumulated. In September, Electrek reported Tesla’s attempts to conceal details of three accidents, redacting information in reports to NHTSA. This opacity drew sharp criticism, with safety advocates like Dan O’Dowd, founder of The Dawn Project, publicly decrying the software’s defects on X, stating that Tesla is ‘terrified of the public learning how defective its software is.’

By November 2025, the crash count reached seven, as per updates from Vehiclesuggest and Electrek. These included incidents where vehicles hit parked cars or froze in roadways, stranding passengers. A post on X by user Ross Hendricks highlighted one early crash, noting it ‘didn’t even involve any complex “edge case”’ but simply hit a parked car.

Regulatory Scrutiny Intensifies

The U.S. government has taken notice. Following videos of erratically driving Robotaxis, The Guardian reported an NHTSA investigation into the Austin rollout. Tesla’s crash rate, estimated at nearly twice that of competitor Waymo despite fewer miles driven, has fueled calls for stricter oversight.

Industry insiders point to Tesla’s supervised autonomy model as a vulnerability. Unlike Waymo’s fully driverless operations, Tesla relies on human supervisors, yet accidents persist. A recent report from Austin American-Statesman revealed four crashes in September alone, just as Tesla planned to cut safety monitors, a move that could exacerbate risks.

Comparisons to Competitors

Contrast this with rivals like Waymo, which operates in multiple cities with a lower crash rate per million miles. Bloomberg Intelligence data, cited in an X post by Dima Zeniuk, shows Tesla at 0.15 accidents per million miles versus Waymo’s 1.16, though critics argue Tesla’s figures may be underreported. Waymo’s transparency in crash reporting stands in stark opposition to Tesla’s redactions.

Elon Musk has defended the program, claiming FSD can handle all conditions. However, incidents like a Robotaxi freezing and stranding passengers, as mocked in an X post by user No Safe Words, illustrate persistent software failures. NBC News captured the confusion among Austin residents, with some amazed by the tech while others question its readiness.

Human Element in Autonomous Failures

Even with safety drivers, lapses occur. A November incident reported by Tesery involved a monitor appearing to doze off during a Bay Area ride, alarming passengers and highlighting human fatigue as a weak link in supervised systems.

The Drive noted that all seven crashes happened under supervision, prompting questions about training and protocols. Gordon Johnson, an analyst posting on X, criticized the software’s regression, pointing to errors like driving in the wrong lane and phantom braking in just 500 miles driven.

Broader Industry Implications

The Robotaxi saga reflects wider challenges in the autonomous vehicle sector. ArenaEV reported that Tesla’s fleet has logged accidents in a relatively low number of miles, eroding trust. As Tesla eyes expansion to California and beyond, these incidents could delay regulatory approvals.

Critics, including X user Commentator, have labeled Tesla ‘a pathetic joke’ with only 24 cars on the road yielding seven crashes. Meanwhile, supporters argue that early hiccups are inevitable in pioneering tech, echoing Musk’s vision of a trillion-dollar robotaxi network.

Economic and Ethical Stakes

Financially, Robotaxi is pivotal for Tesla, with Musk projecting it could add billions to revenue. Yet, safety concerns threaten stock value and public adoption. Fox Business highlighted videos of driving issues post-launch, contributing to investor unease.

Ethically, the debate centers on balancing innovation with public safety. Incidents like the one injuring a cyclist, as alluded to in X posts, underscore potential harm. As Ronald M. Chavin noted on X, with robotaxis, blame shifts to companies like Tesla, complicating liability in an era of AI-driven transport.

Path Forward Amid Uncertainty

Tesla continues to iterate on FSD, with updates aimed at reducing errors. However, without greater transparency, skepticism persists. Industry watchers await NHTSA’s findings, which could mandate changes or halts.

In Austin, the Robotaxi experiment serves as a real-time lab for autonomous tech’s promises and perils. As crashes mount, the question remains: Can Tesla steer its vision to safety, or will these setbacks derail the driverless dream?