Tesla receives robotaxi operating license in Texas amid safety lawsuit
What's the story
Tesla has received a license to operate its Robotaxi ride-hailing service in Texas. The move sets the stage for competition with established players like Uber and Lyft. According to a listing on the Texas Department of Licensing and Regulation's website, Tesla Robotaxi LLC can function as a "transportation network company" in the state until August 6, 2026.
Legal challenges
Company hit by lawsuit news
On August 6, Tesla CEO Elon Musk and the company were sued by shareholders for securities fraud. The lawsuit alleges that they concealed major safety risks associated with the company's self-driving vehicles, including the Robotaxi. Following this news, Tesla's share price dropped 6.1% over two trading days, wiping out approximately $68 billion from its market value.
Service expansion
Robotaxi service launched in San Francisco
Tesla launched its autonomous taxi service in San Francisco in late June. The business is still in its infancy, having only conducted a controlled test run in Austin, Texas, earlier this year. During last month's earnings call, Musk revealed that Tesla is seeking regulatory approval to launch robotaxis in several states, including California, Nevada, Arizona, and Florida.
Strategic shift
Tesla shuts down Dojo team
In a major strategic shift, Tesla has disbanded the team behind its Dojo supercomputer. The move ends its effort to build in-house chips for self-driving technology. Musk announced the decision on X, saying "It doesn't make sense for Tesla to divide its resources and scale two quite different AI chip designs."
Chip sourcing
Deal with Samsung to source chips
Along with shutting down Dojo, Tesla also signed a $16.5 billion deal to source chips from Samsung Electronics. The chips are expected to power its self-driving cars, humanoid robots, and data centers. According to Musk, these new AI6 chips will be manufactured at Samsung's new chip plant in Taylor, Texas.
Information
First store in India
In addition to its tech developments, Tesla also opened its first store in India on July 15. The outlet is located in the Bandra-Kurla Complex area of Mumbai, close to Jio World Drive, where Apple's first-ever store in the country is also located.