Texas Takes Control: New Law Hurdles Tesla's Robotaxi Ambitions in Austin
Texas Governor Greg Abbott signed a law requiring permits for self-driving vehicles, challenging Tesla's upcoming robotaxi trial in Austin. The legislation signals bipartisan caution towards the autonomous vehicle industry. Tesla faces challenges in maintaining its high stock value tied to delivering robotaxis, amid safety concerns and regulatory scrutiny.
In a significant shift from its past stance, Texas has enacted a new law mandating permits for self-driving vehicles, just as Tesla plans a robotaxi trial in Austin. Governor Greg Abbott's approval symbolizes heightened state caution towards the burgeoning autonomous vehicle industry.
The legislation, effective September 1, requires companies to secure permits from the Texas Department of Motor Vehicles and empowers authorities to revoke these if public safety is threatened. This move reverses a 2017 law that barred city regulation of driverless cars, placing Tesla in a delicate position regarding its Austin rollout.
Tesla, aiming to launch with controlled trials, faces challenges with regulatory compliance and safety scrutiny, all critical elements affecting its stock value tied to the successful delivery of autonomous vehicles. As competitors like Waymo and Zoox advance, Tesla's reliance solely on cameras rather than a combination of technologies remains under close observation.
(With inputs from agencies.)
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