Tesla's robotaxi business is shrinking, not growing. The company reported that paid robotaxi miles dropped from 1.1 million in the first quarter to just 700,000 in the second quarter. That is a 36% decline. The news came from a chart Tesla released with its earnings report.
This decline happened even though Tesla expanded its robotaxi service to six cities in Texas and Florida. Some of the cars are fully self-driving, while others still have safety drivers.
Tesla's stock dropped more than 13% after the news. The company has been betting its future on robotaxis. CEO Elon Musk has said autonomy is the key to Tesla's long-term success. But the numbers tell a different story right now.
🔍 The Backstory
Elon Musk has been promising fully self-driving Teslas since 2016. He said the technology would be ready within a year, but it has taken much longer. Competitors like Waymo actually launched real robotaxi services with paying passengers years before Tesla.
Tesla finally launched its own robotaxi network in August 2025. The company used Model Y SUVs to carry passengers in a few cities. At first, the numbers looked like they were growing.
The robotaxi slowdown comes as Tesla faces other problems. The company's core car sales are weakening and profits have fallen below Wall Street's expectations. Tesla is under pressure from both traditional car makers and new EV competitors.
🎯 Why It Matters
Tesla's robotaxi struggles show that self-driving cars are still far from ready. The promises about autonomous driving affect stock prices and investor money.
Tesla's robotaxi business is shrinking, not growing. The company reported that paid robotaxi miles dropped from 1.1 million in the first quarter to just 700,000 in the second quarter. That is a 36% decline. The news came from a chart Tesla released with its earnings report.
This decline happened even though Tesla expanded its robotaxi service to six cities in Texas and Florida. Some of the cars are fully self-driving, while others still have safety drivers.
Tesla's stock dropped more than 13% after the news. The company has been betting its future on robotaxis. CEO Elon Musk has said autonomy is the key to Tesla's long-term success. But the numbers tell a different story right now.
Elon Musk has been promising fully self-driving Teslas since 2016. He said the technology would be ready within a year, but it has taken much longer. Competitors like Waymo actually launched real robotaxi services with paying passengers years before Tesla.
Tesla finally launched its own robotaxi network in August 2025. The company used Model Y SUVs to carry passengers in a few cities. At first, the numbers looked like they were growing.
The robotaxi slowdown comes as Tesla faces other problems. The company's core car sales are weakening and profits have fallen below Wall Street's expectations. Tesla is under pressure from both traditional car makers and new EV competitors.
Tesla's robotaxi struggles show that self-driving cars are still far from ready. The promises about autonomous driving affect stock prices and investor money.