Tesla stock fell over 2% early Thursday, tracking broader market weakness and reacting to reports that raised questions about the company’s progress in launching fully autonomous robotaxis.
The decline came as the S&P 500 slipped 0.7% and the Nasdaq Composite fell 1.3% as investors were not impressed by Nvidia’s latest quarterly earnings.
The Dow Jones Industrial Average rose 204 points, or 0.4%.
Shares of Nvidia dropped roughly 5% despite posting fourth-quarter earnings and revenue that exceeded expectations, weighing on the broader technology sector.
Tesla’s losses were tied in part to renewed scrutiny over its robotaxi ambitions, particularly in California, the largest US auto market.
No autonomous miles logged in California
A report by Reuters cited records from the California Department of Motor Vehicles, showing that Tesla logged no miles of autonomous test driving in California in 2025.
While Tesla holds an entry-level permit from the DMV, it has not secured the additional approvals required to operate fully driverless vehicles in the state.
According to a DMV spokesperson cited in the report, Tesla has not applied for further permits.
Under proposed regulations expected to be finalised later this year, Tesla would need to log at least 50,000 miles of autonomous driving on public roads with a safety driver before applying for a permit allowing testing without one.
State records show Tesla has not logged any miles with regulators since 2019 and has documented only 562 miles in total since 2016.
The contrast with Waymo, owned by Alphabet, has drawn attention.
Waymo logged more than 13 million testing miles between 2014 and 2023 and secured seven regulatory approvals before receiving permission to charge passengers for fully driverless rides.
It is currently one of three companies with permits to commercially operate driverless vehicles in California and the only one running a robotaxi fleet on a scale comparable to Tesla’s stated ambitions.
Reports also indicated that although Tesla’s robotaxi rides are cheaper than Waymo’s, they come with longer wait times and largely rely on human drivers.
Limited operations and legal dispute
Tesla currently operates a small pilot robotaxi service in Austin, Texas, where regulatory hurdles are lower than in California.
In the San Francisco Bay Area, Tesla began offering what it described as a “robotaxi” service last July.
However, according to state regulators and Tesla’s disclosures to customers, the service operates as a chauffeur model with human drivers using the company’s Full Self-Driving software, which remains a driver-assistance system rather than a fully autonomous platform.
Earlier this week, Tesla sued California auto authorities over a previous ruling that concluded the company falsely promoted its vehicles as self-driving.
The DMV had argued that in 2022, Tesla marketed its Autopilot and Full Self-Driving systems in ways that suggested autonomous operation, even though a safety driver was required.
While Tesla has positioned robotaxis and artificial intelligence as central to its long-term strategy, the latest reports underscore the regulatory and operational hurdles that remain.
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