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Uber forced to stop self-driving pilot program in San Francisco by DMV
No longer will Uber’s self-driving cars be seen on San Francisco’s streets. The company announced on Wednesday that it was ending its autonomous car service, which began just a week ago, after clashes with state regulators and amidst much public concern.
The state’s Department of Motor Vehicles revoked Uber’s registrations, saying they “were improperly issued for these vehicles because they were not properly marked as test vehicles.” While competitors such as Tesla Motors, Google, and Nvidia have complied with state testing requirements, Uber claimed it didn’t need a permit, as it says its cars were not fully autonomous.
The sixteen Uber Volvo XC90s were equipped with a suite of roof-mounted sensors and dual driver controls. Two humans were onboard, one who was required to keep hands on the steering wheel at all times and another who monitored the technology.
Self-driving vehicles steer and brake independently but generally operate with a human in the driver’s seat who is prepared to assume driving responsibilities should the situation merit it. California law defines autonomous vehicles as those that drive “without the active physical control or monitoring of a natural person.” Under threat of legal action, Uber shut down the pilot program.
From the moment that Uber’s small self-driving fleet entered San Francisco’s traffic patterns, controversy arose. Videos emerged of Uber pilot cars running a red light and stopped in the middle of an intersection. Uber blamed red light incidents on human driver error, not the cars’ technology.
Brian Wiedenmeir, executive director of the San Francisco Bicycle Coalition, wrote on the organization’s website that, prior to Uber’s official launch, he encountered self-driving Ubers make multiple illegal and unsafe “right-hook” turns across bicycle lanes. “Those vehicles are not yet ready for our streets.” Uber, however, countered, explaining that a software fix for right hooks “has already been fixed operationally.” In other words, the two humans aboard were instructed to assume vehicle control when making these more complicated turns.
San Francisco Mayor Ed Lee commended the DMV for taking enforcement action against Uber. “I have always been a strong supporter of innovation and autonomous vehicle development and testing,” he wrote Wednesday in an emailed statement, “but only under conditions that put human, bicyclist, and pedestrian safety first.”
In a letter to Uber, DMV Director Jean Shiomoto assured the company that the department is a proponent of autonomous technologies. “We are committed to assisting Uber in their efforts to innovate and advance this ground-breaking technology.”
“Uber is welcome to test its autonomous technology in California like everybody else, through the issuance of a testing permit that can take less than 72 hours to issue after a completed application is submitted,” a DMV spokesman wrote in an emailed statement. “The department stands ready to assist Uber in obtaining a permit as expeditiously as possible.”
“We’re now looking at where we can redeploy these cars,” an Uber spokeswoman said in a provided statement, “but remain 100 percent committed to California and will be redoubling our efforts to develop workable statewide rules.”
Uber’s reveal of its San Francisco self-driving car rollout was quite the spectacle, intended to position the company as a keen rivals to its competitors. Anthony Levandowski, vice president for Uber’s self-driving technology, blogged that “the promise of self-driving is core to our mission of reliable transportation, everywhere for everyone.”
Now Pittsburgh is the only U.S. city which allows Uber’s self-driving carshare service. No major incidents have been reported from the Pittsburgh test program, which began in September.
Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
Tesla stock closes at all-time high on heels of Robotaxi progress
Tesla needs to come through on this one Robotaxi metric, analyst says
