Elon Musk faces massive headache as Tesla Robotaxis and self-driving cars face investigations

Meanwhile, French authorities have taken enforcement action against the company, ordering it to cease what they describe as "deceptive marketing practices regarding the fully autonomous driving capability" of its vehicles.

The dual regulatory challenges come as Tesla attempts to pivot towards autonomous driving technology amid declining sales and a 71 per cent drop in year-on-year profits during the first quarter of 2025.

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The US transport safety regulator confirmed it is "aware of the referenced incidents and is in contact with the manufacturer to gather additional information" following the weekend launch.

Videos posted by Tesla influencers and investors showed concerning behaviour from the autonomous vehicles during their trips.

One clip captured a Robotaxi wobbling through a left turn before entering a lane designated for oncoming traffic, then crossing double yellow lines to return to the correct lane.

The limited rollout involved approximately 10 vehicles operating within a restricted area of Austin, each accompanied by safety drivers positioned in the front passenger seat.

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France's competition and consumer affairs watchdog has ordered Tesla to end its "deceptive" practices or face fines of €50,000 (£42,647) per day after the deadline expires.

The French general directorate for competition, consumer affairs and fraud control (DGCCRF) identified multiple breaches during investigations conducted in 2023 and 2024.

Beyond the autonomous driving claims, authorities cited Tesla for issuing sales contracts without dates and failing to provide valid receipts for partial cash payments.

The watchdog also accused the company of not issuing timely refunds when customers exercised their cooling-off period rights and failed to provide adequate information about delivery methods.

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The French intervention coincides with a sharp decline in Tesla's local sales, with January registrations plummeting to 1,141 vehicles from 3,118 the previous year.

Tesla heavily promoted the initial rollout, charging an initial fee of just $4.20 (£3.09) for early riders.

Despite CEO Elon Musk touting the launch as a major success and claiming it would improve road safety, there have been some concerns around its safety benefits.

"NHTSA will continue to enforce the law on all manufacturers of motor vehicles and equipment, in accordance with the Vehicle Safety Act and our data-driven, risk-based investigative process," the agency stated.

The regulator clarified that it does not pre-approve new technologies or driving systems. Instead, manufacturers self-certify that their vehicles meet agency standards, with investigators subsequently examining potential safety defects.

Musk has staked Tesla's future on the Robotaxi programme, envisioning millions of driverless vehicles operating globally.

In an earnings call in April, he said: "I predict that there will be millions of Teslas operating fully autonomously in the second half of next year."

The French backlash extends beyond regulatory action, with a dozen Teslas torched in a suspected arson attack near Toulouse in March, and drivers suing the company claiming Musk's political associations have transformed their vehicles into symbols of the "extreme Right".