Tesla's robotaxi rollout is alarming the public, new report shows

Samuel O'Brient

Sat, May 31, 2025, 12:33 PM 4 min read

After a volatile and complicated start to the year, marked by a disappointing earnings report and declining sales across multiple key markets, the electric vehicle (EV) producer has put investors through many motions. This prompted investors and analysts to call for Musk to refocus his energy on the company.

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Now the CEO seems to be doing that, after announcing he will be ceasing his work with the Department of Government Efficiency (DOGE) and returning to his responsibilities at Tesla and SpaceX. This comes at a pivotal time, as the automaker prepares to roll out its self-driving robotaxi fleet in Austin, Texas.

Despite the positive momentum surrounding this key event, though, a recent report shows that public perception toward Tesla’s new technology isn’t positive.

Tesla CEO Elon Musk is preparing for an important event, but some experts have concerns about his technology.Image source&colon; Apu Gomes/Getty Images — Tesla CEO Elon Musk is preparing for an important event, but some experts have concerns about his technology.Image source: Apu Gomes/Getty Images

A new report shows a concerning trend for Tesla

The rise of self-driving vehicles has become a defining trend over the past few years, as companies like Tesla and Waymo have worked to outmaneuver each other. While the latter has already established a presence in several major U.S. cities, Elon Musk has made sure the world knows Tesla’s launch is coming soon.

A true master of hype, Musk has successfully kept the nation’s focus on Tesla’s historic event, making it clear that it is proceeding as planned. However, a market research initiative that tracks consumer sentiment toward EVs recently published a detailed report with some statistics that may concern Musk.

In the May 2025 edition of the Electric Vehicle Intelligence Report (EVIR), its authors highlight some potential problems both for Tesla and any automakers seeking to venture into the autonomous driving space. However, much of the negative sentiment seems to center on Tesla.

“Consumers are skeptical of the full self-driving (FSD) technology that undergirds the robotaxi proposition, with 60% considering Tesla’s full self-driving 'unsafe,” 77% unwilling to utilize full self-driving technology, and a substantial share (48%) believing full self-driving should be illegal,” the report states.

It adds, though, that younger, higher-income individuals who live in urban areas are more open to autonomous driving technology than other groups. Those are the type of consumers Musk is likely targeting with the new robotaxi fleet.

Even so, the authors also flag another concerning element for Tesla. They note that the former EV leader has been declining in areas such as brand positivity and trust but add that its rivals, such as Lucid and Rivian, have recently made progress in these areas, indicating that consumers are increasingly shifting away from Tesla.

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Other experts have also raised concerns regarding Tesla’s robotaxi launch. TheStreet’s Tony Owusu reports that Wall Street analyst Alexander Pots of Piper Sandler has speculated that the company’s FSD technology isn’t advanced enough to handle the challenges that the launch will pose.

According to one expert, Tesla may have a robotaxi problem

With the robotaxi launch drawing closer by the day, investors and consumers are watching closely to see how the event will turn out. Musk has described himself as being “extremely paranoid” about it, even after Tesla reported that its FSD system has almost tripled the cumulative miles it has driven over the past year.

Evan Roth Smith, head of research for the EVIR, spoke to TheStreet about the report’s statistics and their potential implications for Tesla and Musk. While he sees damage to the brand’s reputation as a likely problem, he states:

“Even more worrisome is the data on robotaxis, which is what Musk has pointed to as the solution to Tesla's sales woes — the market just isn't there yet. Consumers are extremely skeptical towards robotaxi technology, extremely hesitant to adopt it, and half of consumers want to ban it.”

As Roth Smith sees it, Tesla is likely facing an uphill battle as it bets big on robotaxis. The report’s data makes it clear that many consumers don’t trust the technology behind them and therefore aren’t likely to embrace it, which could severely compromise Tesla’s growth prospects.

Tesla's robotaxi rollout is alarming the public, new report shows first appeared on TheStreet on May 31, 2025

This story was originally reported by TheStreet on May 31, 2025, where it first appeared.

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