Chasing Waymo's self-driving pace, Tesla applies to test Robotaxi in Arizona

According to Zhitong Finance APP, in the context of increasingly fierce competition in autonomous driving, Tesla (TSLA.US) is accelerating the expansion of its Robotaxi business. According to a spokesperson from the Arizona Department of Transportation, Tesla has recently officially applied for testing and operation of Robotaxi in the state, including both modes with and without safety drivers, and has expressed a clear intention to enter the Phoenix metropolitan area.

The review results of this application are expected to be released by the end of July. If approved, it will mark a key step for Tesla in promoting the commercialization of Robotaxi in multiple cities in the United States.

This move by Tesla is seen as the latest attempt to catch up with Waymo. Waymo, a pioneer in autonomous driving under Google's parent company Alphabet (GOOGL.US, GOOG.US), launched a fully driverless Robotaxi service in Phoenix as early as 2020, open to the public. With years of accumulated data, technology, and compliance experience, Waymo currently holds a leading position in the U.S. Robotaxi market.

In contrast, although Tesla initially attracted market attention with its autonomous driving concept, it has clearly fallen behind Waymo in terms of actual technology implementation. Now, Tesla is striving to catch up, attempting to achieve large-scale deployment through a more cost-effective technological approach.

Unlike most autonomous driving companies that rely on expensive LiDAR and high-precision maps, Tesla chooses to focus on a camera-based visual recognition system. Musk believes that this "human-like vision" solution is more commercially viable and easier to achieve large-scale adoption in the long run.

This Arizona expansion plan coincides with Tesla's preliminary testing of Robotaxi in Austin, Texas. Since June, Tesla has deployed a batch of Model Y SUVs equipped with the latest autonomous driving system in Austin for invitation-only passenger trial operations.

Although these vehicles are branded as Robotaxi, they are still in the "semi-automated" stage: a Tesla employee serves as a safety supervisor sitting in the front passenger seat, ready to take over the vehicle in case of any issues. Most passengers are invited Tesla fans, some of whom are even well-known social media influencers or YouTubers.

However, Tesla's testing in Austin has not been smooth sailing. A YouTuber named "Dirty Tesla" recorded a video during the experience showing its Robotaxi lightly bumping into a vehicle parked in front of a restaurant. After the video spread on social media, it raised widespread public concern about safety.

Moreover, several videos of Robotaxi violating traffic rules have circulated online, prompting the National Highway Traffic Safety Administration (NHTSA) to intervene in the investigation. Industry insiders are worried that if Tesla fails to address core system stability and liability issues, its path to Robotaxi commercialization will face significant obstacles.

Despite the challenges, Musk remains determined to push forward with the expansion of the Robotaxi landscape. He revealed on social media platform X this Wednesday that Tesla's Robotaxi service "is likely to expand to the San Francisco Bay Area in California within one to two months." However, California regulators have taken a cautious stance towards Tesla. As early as 2022, the California Department of Motor Vehicles (DMV) sued Tesla, accusing it of making "false or misleading statements" in its promotion of autonomous driving features. Although the lawsuit has not yet been finally adjudicated, this incident reflects that Tesla faces not only technical barriers in the field of autonomous driving but also policy and compliance challenges.

Tesla is expected to hold a conference call for its second-quarter 2025 earnings report on July 23, during which the progress of Robotaxi, operational feedback, and future plans will undoubtedly become the focus of attention for investors and analysts