Tesla stock pares gains amid reports of robotaxi traffic violations

Investing.com -- Tesla (NASDAQ: TSLA) stock pared its gains to 7% from an earlier 10% rise on Monday amid concerns that its newly launched self-driving robotaxis violated traffic laws during their first day of paid rides.

According to Bloomberg, several customers reported issues with the autonomous vehicles, including one Tesla Model Y that made an improper left turn, entering a lane for opposing traffic before crossing a double-yellow line to return to the correct lane. The incident, captured on video by former Tesla podcast host Rob Maurer, included audible honking from other drivers.

Other riders documented instances of Tesla’s driverless vehicles exceeding posted speed limits. Tesla investor Sawyer Merritt shared footage showing a robotaxi reaching 35 miles per hour in a 30 mph zone, while YouTuber Herbert Ong noted during a live stream that his vehicle was traveling at 39 mph in a 35 mph zone.

The reports come as Tesla begins its commercial robotaxi service, a key initiative in the company’s autonomous driving strategy. The traffic violations raise questions about the readiness of the technology for public roads and potential regulatory scrutiny as Tesla expands the service.

Despite these concerns, Tesla shares maintained significant gains, though below their intraday peak, as investors continue to evaluate the long-term potential of the company’s self-driving technology against these early implementation challenges.

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