Tesla Inc NASDAQ TSLA faces pressure from Texas Democratic lawmakers to postpone the launch of its robotaxi service in Austin until new autonomous vehicle regulations take effect on September 1 2025.

The Situation Unfolding

Tesla CEO Elon Musk announced a plan to initiate a limited robotaxi service, starting with ten vehicles in Austin on June 22. However, a group of seven Democratic legislators formally urged Tesla to wait for the new autonomous driving law to come into effect.

This group emphasized several concerns:

• Safety Focus: New legislation includes stronger provisions aimed at ensuring safety.

• Public Trust: There is a pressing need for increased public confidence in fully autonomous operations.

• Compliance Details: A request for Tesla to disclose its plans for compliance should it proceed with the launch.

Current Legislative Climate

While the new regulations are not yet active, existing laws permit autonomous vehicles to operate as long as they meet basic insurance and registration requirements. The impact of this request may be limited, given the Republican control of the Texas legislature.

Monitoring Tesla’s Financial Position

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