Musk will launch unmanned taxis in June, Texas becomes a "driverless paradise," but who will manage the safety risks?

As Tesla's sales decline and its performance fails to meet expectations, Musk confidently stated during the earnings call at the end of January that the company plans to launch autonomous taxi services in Austin, Texas, in June this year, without revealing further details.

However, this plan has raised concerns among many, as Tesla's autonomous driving technology has not been fully validated. If an incident occurs, how will safety and legal liability be handled?

Tesla has long attributed the responsibility for accidents related to its Full Self-Driving (FSD) assistance system to users, claiming that owners were not prepared to take over driving. However, legal experts point out that this taxi service will be fully autonomous, meaning Tesla will have to bear the responsibility if something goes wrong.

Over the past decade, Musk has repeatedly promised to launch fully autonomous Tesla vehicles but has yet to deliver. While it remains uncertain when Tesla will truly deploy fully autonomous driving technology, the legal environment in Texas facilitates Tesla's launch of autonomous taxi services.

Texas Freedom vs. California Strict Regulation

Texas adopts a deregulated approach, aligning with Musk's political stance.

According to Texas law, autonomous vehicle companies only need to register and insure their vehicles like regular cars and equip them with technology to record potential accident data to freely use public roads. The state government does not issue permits for autonomous taxi services nor does it regulate them. Additionally, state law prohibits cities and counties from establishing their own regulations for autonomous vehicles.

Texas Senator Kelly Hancock stated that the autonomous driving legislation enacted in 2017 aims to promote industry development in a competitive market and avoid setting entry barriers. Hancock emphasized:

"As a conservative, I want to minimize government influence. We cannot have thousands of different regulations, as that would stifle an industry."

This free-market-oriented policy provides a relaxed operating environment for companies like Tesla. At the end of 2021, Musk moved the company's headquarters from California to Austin, Texas, precisely because of the policy advantages in Texas.

In contrast, California has strict controls over the operation of autonomous vehicles. Currently, only Cruise, a subsidiary of General Motors, and Waymo, a subsidiary of Alphabet, have obtained permits to provide paid autonomous taxi services. Both companies underwent millions of miles of testing under stricter permits before receiving passenger approval.

Although California does not explicitly specify the testing mileage required for approval, other companies have conducted millions of miles of autonomous driving tests under state supervision. In comparison, Tesla has recorded only 562 miles of testing mileage in California since 2016.

During the earnings call on January 29, Musk announced plans to release an "unregulated" version of the full autonomous driving system in California this year. However, according to Reuters, the two regulatory agencies in California stated that Tesla has not applied for the permits required for operating autonomous vehicles or carrying passengers, and has not reported testing data to the state government since 2019Bryant Walker Smith, a law professor at the University of South Carolina focusing on autonomous driving, pointed out that Texas did not require "pre-market approval" before Tesla deployed autonomous vehicles. However, he expressed skepticism about Tesla's large-scale deployment of autonomous driving technology in Texas or elsewhere, especially after the dissatisfaction with its performance following the demonstration of the robotaxi concept vehicle Cybercab near Los Angeles last October.

Smith believes:

"Tesla cannot suddenly make all vehicles capable of autonomous driving anywhere and under any conditions."

He speculated that Tesla is more likely to conduct small-scale tests, such as testing in limited areas in Austin under good weather conditions, or allowing remote human intervention to prevent accidents.

Regulatory Vacuum: Frequent Safety Hazards

Adam Hammons, a spokesperson for the Texas Department of Transportation, stated that autonomous vehicles can be tested and operated on Texas roads as long as they meet the same safety and insurance requirements as other vehicles. However, behind this lenient policy lies a regulatory vacuum.

Austin City Council member Zo Qadri expressed frustration over the city's inability to impose rules on "private companies using public roads as testing grounds." He bluntly stated, "Ultimately, we have no power."

In the past two years, the number of autonomous vehicles on the streets of Austin has surged, raising concerns among residents and the government. In 2023, over 20 Cruise autonomous taxis caused traffic congestion near the University of Texas, unable to pass each other properly.

Since July 2023, the city has recorded 78 formal complaints from law enforcement, emergency personnel, and residents. One resident described in a December complaint how a Waymo vehicle blocked a lane for half an hour, resulting in "at least three very dangerous accidents."

A spokesperson for the Austin Department of Transportation and Public Works stated that police have encountered issues with autonomous vehicles not responding to hand signals while directing traffic. Additionally, the city has been unable to issue tickets to these vehicles. Recently, the city devised a method to submit traffic violation complaints observed by police to municipal court.

In the face of controversy, tech companies are also actively responding. A Waymo spokesperson stated that the company has been working with local leaders and emergency personnel to "earn the trust of the Austin community" and continuously improve its services.

Tesla proactively contacted Austin officials last May to obtain information on local fire and police procedures, school and district maps, and traffic rules during special events