Tesla stock pressured amid tech weakness and robotaxi rollout concerns

Investing.com -- Tesla (NASDAQ:TSLA) stock fell 1.8% Thursday morning amid broader weakness in the technology sector and following reports that the company may be scaling back its robotaxi service timeline.

The electric vehicle maker’s shares declined as investors reacted to information suggesting Tesla is moving slower than expected on its autonomous ride-hailing service rollout. According to The Information, CEO Elon Musk has already lowered expectations for the company’s robotaxi service, which he has described as critical to Tesla’s future.

Tesla reportedly has not completed necessary regulatory paperwork to offer robotaxi rides in Arizona and Nevada, two of three additional states where Musk indicated the service would be operating by the end of 2025. While Florida has looser regulations that could facilitate an earlier launch, Tesla has yet to apply for operating a fully autonomous service in California, where it’s currently testing with human safety drivers.

The regulatory hurdles could complicate Musk’s recently revised target of launching robotaxi service in 8-10 U.S. metro areas within the next two months. This goal already represents a significant reduction from his July statement that robotaxi would reach "half the U.S. population by the end of 2025," which would have required launches across dozens of major metropolitan areas.

The autonomous ride-hailing service faces challenges from varying state and city regulations for autonomous vehicles, creating a complex regulatory landscape for any broad deployment plans.

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