❓WHAT HAPPENED: Elon Muks’s Tesla is under investigation in both the U.S. and France over concerns about its self-driving technology and safety practices.
👤WHO WAS INVOLVED: Tesla, Musk, the U.S. National Highway Traffic Safety Administration (NHTSA), French regulators.
📍WHEN & WHERE: Investigations launched in 2025 following incidents in Austin, Texas, and regulatory actions in France.
💬KEY QUOTE: “I predict that there will be millions of Teslas operating fully autonomously in the second half of next year.” – Elon Musk
🎯IMPACT: Tesla faces regulatory challenges, safety concerns, and backlash in key markets, impacting its reputation and sales.
Tesla is facing regulatory scrutiny in both the United States and France over its self-driving technology and safety claims. The U.S. National Highway Traffic Safety Administration (NHTSA) has launched an investigation into Tesla‘s Robotaxi service in Austin, Texas, after videos surfaced showing vehicles violating traffic laws during their debut weekend.
In France, regulators have ordered Tesla to cease what they described as “deceptive marketing practices” regarding the autonomous driving capabilities of its vehicles. The French action follows a sharp decline in Tesla’s local sales, with registrations dropping from 3,118 in January last year to 1,141 this year.
Videos posted online showed troubling incidents involving the Robotaxi service, including one vehicle veering into a lane for oncoming traffic before crossing double yellow lines to correct itself. The rollout in Austin involved about 10 vehicles operating in a limited area, each with a safety driver in the front passenger seat.
Tesla “robotaxi” launch day in Austin. This is the only video you need to see, in case it gets deleted.
Watch the Tesla try to turn where it’s not supposed to at around 18 seconds into the video. $TSLA pic.twitter.com/8307Es7zWJ
— Motorhead (@BradMunchen) June 23, 2025
The NHTSA confirmed it is “aware of the referenced incidents and is in contact with the manufacturer to gather additional information.” The agency emphasized that manufacturers are responsible for self-certifying that their vehicles meet safety standards, with regulators investigating potential defects afterward. “NHTSA will continue to enforce the law on all manufacturers of motor vehicles and equipment, in accordance with the Vehicle Safety Act and our data-driven, risk-based investigative process,” the agency said.
Meanwhile, Tesla CEO Elon Musk has remained optimistic about the company’s autonomous driving ambitions, stating during an earnings call in April: “I predict that there will be millions of Teslas operating fully autonomously in the second half of next year.” However, Tesla’s challenges extend beyond regulatory scrutiny, with incidents like suspected arson attacks on Tesla vehicles and lawsuits alleging the company’s association with Musk’s political views has harmed its brand.
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