Tesla's Robotaxi service is expected to compete with other companies in the autonomous vehicle space, including Waymo, Amazon's Zoox, and Baidu.

Goldman Sachs analyst Mark Delaney also holds a 'Hold' rating on Tesla, emphasizing the need for improvements in FSD performance and cost reduction for future success.

Tesla reported a staggering 71% drop in profits in the first quarter of 2025, amidst backlash against CEO Elon Musk's political affiliations and decisions to cut government jobs.

Tesla is committed to addressing safety concerns and collaborating with regulators, showcasing a willingness to adapt its approach amidst significant technical and regulatory hurdles.

Simultaneously, Tesla is rolling out a new version of its FSD software as part of the 2025.14.6 update, which includes minor changes and bug fixes.

A recent fatal crash of a Cybertruck in California has intensified regulatory concerns about Tesla's FSD system, as preliminary findings indicate detection issues.

Piper Sandler analyst Alexander Potter maintains a 'Buy' rating on Tesla with a price target of $400, citing FSD software as a key driver for optimism, despite concerns about its current limitations.

The National Highway Traffic Safety Administration (NHTSA) is currently investigating Tesla's plans for its Robotaxi service, with a particular focus on the Full Self-Driving (FSD) capabilities in adverse weather conditions.

U.S. regulators are requesting detailed information from Tesla regarding its upcoming Robotaxi service, which is set to launch in Austin, Texas, in June 2025.

Despite these challenges, Tesla's stock rose approximately 8% in premarket trading on May 12, 2025, reaching $322.56 per share, partly due to favorable trade news between the U.S. and China.

The temporary rollback of tariffs by 115% for 90 days between the U.S. and China is expected to positively impact Tesla's market performance.

Despite the bullish sentiment surrounding Tesla, the current version of FSD still requires human intervention, indicating that the company may be preparing a safer version ahead of the Austin launch.