Tesla Robotaxis Face Greater 'Economic' Challenge From Human Drivers Of Uber, Lyft Than From Waymo, Warn Experts, Call Austin Launch 'Proof Of Concept Exercise' - Ford Motor (NYSE:F), General Motors (NYSE:GM)

CEO Elon Musk has announced the launch date for Tesla Inc.’s TSLA long-anticipated robotaxi service in Austin, Texas, on June 22, but experts are skeptical over its success.

What Happened: Musk is placing a significant bet on the future of Tesla, with the robotaxi service expected to provide a much-needed financial boost amid declining sales and profits. However, experts suggest that the real competition for Tesla may come from human drivers working for ride-sharing companies like Uber UBER and Lyft LYFT, reported CNN.

Bryant Walker Smith, a scholar at the Center for Internet and Society at Stanford Law School, highlighted the economic challenge of competing with Uber drivers who maintain their own older vehicles while earning less than minimum wage compared to the high pay for Tesla engineers and mechanics.

"The challenge is less technological and more economic," cautioned Smith.

Meanwhile, GLJ Research analyst Gordon Johnson predicts, "This is a Tesla proof of concept exercise, not a rollout or a testing of a commercial asset for sale.”

While Elon Musk remains confident in the potential of autonomous vehicles (AV) and robotaxis, traditional automakers like General Motors GM and Ford F have already abandoned their plans for similar services.

Notably, Google parent Alphabet GOOG GOOGL does not reveal the specific financial performance of its autonomous vehicle unit, Waymo. However, the division that encompasses Waymo reported a $4.1 billion loss last year, despite Alphabet investing $5.6 billion into it.

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Why It Matters: The news of Tesla’s robotaxi launch comes amid a rapidly evolving landscape in the autonomous vehicle industry. Previously, experts like Gary Black had described the launch as an “experiment” rather than a market test.

Meanwhile, Uber Technologies Inc. UBER has been making significant strides in the robotaxi space, with a 37.53% increase in its stock price in 2025. The company’s robotaxi partnership with Wayve, along with its dominant market share in the U.S. rideshare industry, has kept investors optimistic about its future in the autonomous vehicle market.

The success of Tesla’s robotaxi service will depend on how it navigates these challenges and proves its viability in the competitive market.

On a year-to-date basis, Tesla stock declined 15.86%, according to data from Benzinga Pro. Tesla scores well on Momentum, Quality and Growth metrics, but offers poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today!