New report reveals Tesla's struggles in race for self-driving dominance: 'It's not viable'

Tesla's long-promised self-driving future may be falling further behind. While the company is still testing a small fleet of robotaxis in Texas, a leading car rental company in China has already launched a full-scale autonomous rental service — raising new concerns about who's really leading the EV-powered transportation revolution.

What's happening?

Autoblog recently reported that Chinese tech company Baidu and rental giant Car Inc. have launched a self-driving rental service that doesn't need any human drivers. Called Apollo Go, the service allows people to book, ride, and return fully autonomous cars across major Chinese cities — no license required.

With more than 11 million rides already completed and expansion plans after signing a memorandum of understanding with Dubai's Roads and Transport Authority, Apollo Go is pulling far ahead in the robotaxi race.

Meanwhile, Tesla's pilot program is still limited to just a handful of modified Model Ys in Austin, Texas — raising questions about whether the company is falling behind in one of its most ambitious promises.

Why is this issue important?

This is about more than just tech competition — it's about the future of clean transportation.

According to the U.S. Environmental Protection Agency, transportation is the largest source of pollution in the United States, accounting for approximately 28% of heat-trapping gases. That's why the rise of electric, self-driving vehicles matters: fewer cars on the road, less pollution, and cleaner air for everyone.

A life-cycle analysis by the ICCT found that battery electric vehicles produce up to 78% less air pollution than gasoline cars over their lifetime.

If companies like Tesla fall behind, it could delay the shift to cleaner, more accessible options, especially in cities where shared EVs could replace thousands of gas-burning cars.

What's being done about the issue?

Tesla plans to introduce a dedicated model called the Cybercab by 2026, designed to let Tesla owners rent out their cars and earn passive income.

However, many remain skeptical about this plan. "It's not viable. Individual car owners don't want to be 'landlords' of their car. Riders are often hard on cars — they treat them poorly, make messes, slam doors — all because the vehicle is not theirs. This could deter owners from participating," Edwin Olson, CEO of May Mobility, told Fortune.

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By contrast, the Apollo Go fleet is professionally managed, giving it a head start on building cleaner, driverless public transit at scale. If Tesla and other EV makers adopt similar models, we could see fewer private cars on the road, lower pollution, and more affordable public transportation access for millions.

In the meantime, individual drivers can still make an impact. Choosing an electric vehicle for your next car — whether it's a Tesla or not — helps reduce pollution and pushes the industry toward a cleaner future.

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