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Cars

Tesla Self-Driving Taxi Breaks Traffic Laws on First Day: What Went Wrong?

By
Rethabile Nyelele
Published: 26 June 2025,
4 Min Read
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Tesla Self-Driving Taxi Breaks Traffic Laws on First Day What Went Wrong
Image: CNBC
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Tesla’s much-anticipated debut of its self-driving robotaxi service in Austin got off to a rocky start, drawing immediate scrutiny from U.S. safety regulators after several apparent traffic violations were captured on camera during its first day of paid rides.

Contents
  • Regulatory Scrutiny Begins
  • Background and Past Issues
  • A Cautious Start for Tesla Robotaxis

Regulatory Scrutiny Begins

The U.S. National Highway Traffic Safety Administration (NHTSA) confirmed it is aware of multiple incidents involving Tesla’s autonomous vehicles disobeying traffic rules and is currently gathering information from the company. Although a formal investigation has not yet been launched, the agency emphasized that it would “take any necessary actions to protect road safety” after reviewing the reports and evidence.

This comes after Tesla’s stock slipped by as much as 1.4% in postmarket trading following the news of the federal inquiry.

Several troubling videos have surfaced online, showing Tesla’s driverless Model Y vehicles making potentially dangerous errors. One clip, shared by Tesla investor Rob Maurer, shows a Model Y entering an intersection from a left-turn-only lane, then unexpectedly veering into an empty lane designated for oncoming traffic. The car corrected its path only after a horn honk and crossed a double-yellow line—an illegal maneuver in most jurisdictions.

image 190

Other users posted footage showing the vehicles exceeding the speed limit. Investor Sawyer Merritt captured a Model Y traveling at 35 mph just after passing a clearly marked 30 mph speed limit sign. Similarly, YouTuber Herbert Ong noted during a live stream that his vehicle was driving at 39 mph in a 35 mph zone, rationalizing the speed as being in line with surrounding traffic.

Not all problems were related to traffic violations. In another video posted by the YouTuber known as “Bearded Tesla Guy,” the Model Y failed to properly pull over when prompted by passengers. Instead of stopping safely at the curb, the vehicle halted in the middle of the road. It took two separate interactions with remote support team to get the car moving again and reroute it to the correct drop-off location.

Background and Past Issues

This isn’t the first time Tesla’s self-driving software has faced backlash. In early 2023, the company had to recall more than 362,000 vehicles after NHTSA found that its Full Self-Driving (FSD) system could allow cars to break local traffic laws.

The agency continues to investigate the performance of Tesla’s FSD suite, especially under challenging visibility conditions such as glare, dust, and fog.

Despite these early hiccups, Elon Musk hailed the launch as a success, congratulating staff and sharing optimism for the company’s autonomous future. Barclays analyst Dan Levy echoed a generally positive sentiment, stating that the first day appeared “largely uneventful” from a broader operational perspective.

image 192

A Cautious Start for Tesla Robotaxis

While the City of Austin has not officially received any safety complaints so far, the launch day glitches signal that Tesla still faces a steep road ahead in refining its self-driving technology for public streets. As NHTSA continues to assess the situation, it remains to be seen how Tesla will respond to growing safety concerns and regulatory oversight.

Tesla’s robotaxi rollout, while ambitious, highlights the significant challenges of autonomous mobility in real-world conditions. Traffic laws exist to ensure public safety, and any vehicle—human-driven or AI-powered—must respect them. As regulators, users, and industry stakeholders closely watch Tesla’s next moves, one thing is clear: perfection in automation is not just an engineering milestone, but a public trust requirement.

Related article: Tesla Sales Spike in Australia: Updated Model Y Drives Highest Monthly Sales in 12 Months

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