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Tesla analyst states ‘Robotaxi is not the answer now’
Tesla analyst Dan Ives from Wedbush Securities recently stated that the Tesla “Robotaxi is not the answer for now.” Ives believes that the Model 2 should be on Tesla’s blueprint.
In a recent note, the Wedbush analyst explained why Tesla should prioritize the Model 2. Earlier this month, Reuters reported that Tesla was shelving its $25,000 electric vehicle (EV) but would still develop the self-driving Robotaxi.
Elon Musk refuted the claim and later announced the unveiling of the Tesla Robotaxi. The Tesla Robotaxi will be similar to the company’s $25,000 EV, except the former has no steering wheel.
Musk didn’t share any more details about the Tesla Robotaxi event. However, during the event, he will likely clarify any uncertainties about Tesla’s next-generation vehicle.
Wedbush believes that fully autonomous cars will get their time to shine around 20230, but more affordable electric vehicles are crucial for the future of the EV market right now. Many automakers have reported plateauing demand for EVs. Some customers argue that EV prices are still too high, and range anxiety is still a concern.
Speaking about Tesla’s Robotaxi unveiling event, Ives wrote: “Our view is while this is an exciting announcement around robotaxis, we do not expect full autonomy (no steering wheel models) until 2030 and believe it is crucial to deliver a Model 2 vehicle over the next 18 months along with robotaxis
“If robotaxis is viewed as the ‘magic model’ to replace Model 2 we would view this as a debacle, negative for the Tesla story.”
During Tesla’s Q4 and Full Year 2024 earnings call, Elon Musk estimated that the company would start producing its next-generation vehicle by the second half of 2025. Giga Texas will be the first Tesla factory to produce the next-gen EV.
If you have any tips, contact me at maria@teslarati.com or via X @Writer_01001101.
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First Tesla driverless robotaxi spotted in the wild in Austin, TX
The short clip suggests that Tesla may be ramping up its preparations for its robotaxi rollout in Austin.

A recent video posted on X has provided a first look at Tesla’s driverless robotaxi, which is expected to be deployed in Austin, Texas, this month. The vehicle was a new Tesla Model Y, which was followed by what appeared to be a manned chase car.
The short clip suggests that Tesla may be ramping up its preparations for its robotaxi rollout in Austin.
The First Robotaxi Sighting
It was evident from the short clip that the Tesla robotaxi was operating completely driverless. In the video, which was posted on X by @TerrapinTerpene, the driverless Tesla could be seen confidently making a turn. The vehicle looked and behaved like any other car on the road, save for the fact that there was no one in the driver’s seat.
Interestingly enough, the short video also provided a teaser on where Tesla will place its “robotaxi” logo on its self-driving cars. Based on the video, the robotaxis’ logo will be tastefully placed on the front doors, making the vehicles look sleek and clean.
Initial Rollout Imminent
Recent reports have suggested that Tesla is already starting the testing phase of its robotaxi service in Austin, Texas. Expectations are also high that Tesla’s initial fleet of self-driving vehicles will be utilizing a lot of teleoperation to ensure that they operate as safely as possible.
Updates to Austin’s official website recently have hinted at Tesla’s robotaxi launch. Just this Monday, Tesla was listed as an autonomous vehicle (AV) operator on Austin’s official Department of Motor Vehicles (DMV). Other AV operators listed on the site are Waymo and Zoox, among others.
Elon Musk, for his part, has noted that by the end of June, the public in Austin should be ready to take rides in Tesla robotaxis without an invitation. He also noted in late May that Tesla has been busy testing driverless cars on Austin’s city streets without any incidents.
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Tesla Model Y proudly takes its place as China’s best-selling SUV in May
The Model Y edged out competitors like the BYD Song Plus.

The Tesla Model Y claimed its position as China’s best-selling SUV in May, with 24,770 units registered, according to insurance data from China EV DataTracker.
The Model Y edged out competitors like the BYD Song Plus, which recorded 24,240 registrations, as well as Geely’s gasoline-powered Xingyue L, which took third place with 21,014 units registered, as noted in Car News China report.
Return To The Top
The Model Y’s return to the top of China’s SUV market follows a second-place finish in April, when it trailed the BYD Song Plus by just 684 units. Tesla China had 19,984 new Model Y registrations in April, while BYD had 20,668 registrations for the Song Plus.
For the first five months of 2025, Tesla sold 126,643 Model Ys in China, outpacing the Song Plus at 110,551 units and BYD’s Song Pro at 80,245 units. This is quite impressive as the new Tesla Model Y is still a premium vehicle that is significantly more expensive than a good number of its competitors.
Year-Over-Year Challenges
Despite its SUV crown, Tesla’s year-over-year performance in China is still seeing headwinds. May sales totaled 38,588 units, a 30% year-over-year decline. From January to May, Tesla delivered 201,926 vehicles in China, a 7.8% drop year-over-year. These drops, however, are notably affected by the company’s changeover to the new Model Y in the first quarter.
Exports from Tesla’s Shanghai Gigafactory also fell, with 90,949 vehicles being shipped from January to May 2025. This represents a decline of 33.4% year-over-year, though May exports rose 33% to 23,074 units.
China’s electric vehicle market, meanwhile, showed robust growth. Total NEV sales, which includes battery electric vehicles (BEVs) and plug-in hybrids (PHEVs), reached 1,021,000 units in May, up 28% year-over-year. BEV sales alone hit 607,000 units, a 22.4% increase.
Considering the fact that China’s BEV market is extremely competitive, the Tesla Model Y’s rise to the top of the country’s SUV rankings is extremely impressive.
News
Waymo temporarily halts service in select San Francisco and LA areas amid protests
The suspensions came after several Waymo Jaguar I-Pace robotaxis were vandalized and set ablaze during the demonstrations.

Waymo, Alphabet’s autonomous vehicle subsidiary, has suspended its driverless taxi operations in parts of Los Angeles and San Francisco amid violent protests linked to U.S. Immigration and Customs Enforcement (ICE) raids in the state.
The suspensions came after several Waymo Jaguar I-Pace robotaxis were vandalized and set ablaze during the demonstrations.
Waymo Catches Strays Amid Anti-ICE Protests
Protests erupted in Los Angeles and San Francisco in response to the Trump administration’s immigration raids, which ultimately resulted in California Governor Gavin Newsom calling the White House’s deployment of National Guard troops unconstitutional.
Amidst the protests, images and videos emerged showing several Waymo robotaxis being defaced and destroyed. At least five Waymo robotaxis ended up being caught in the crossfire, and at least one vehicle ended up being burned to the ground.
The incident resulted in the Los Angeles Police Department advising people to avoid downtown areas due to toxic fumes from the robotaxis’ burning lithium-ion batteries. As noted in a KRON4 report, Waymo ultimately halted service in affected areas “out of an abundance of caution.”
Robotaxi Sentiments
The cost of the attacks is notable. Each Waymo robotaxi is valued between $150,000 and $200,000, per a 2024 Wall Street Journal report. Interestingly enough, this is not the first time that Waymo’s robotaxis ended up on the receiving end of angry protesters. On February 24, a Jaguar I-PACE robotaxi was set ablaze and vandalized by a crowd in San Francisco. Videos taken at the time showed a mob of people attacking the vehicle.
Despite the recent attacks on its robotaxis, Waymo has stated it has “no reason to believe” its vehicles were specifically targeted during the protests, as per a report from The Washington Post. A company spokesperson also noted that some of the Waymo robotaxis that were defaced and destroyed during the violent demonstrations had been completing drop-offs near the protest zones.
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