Tesla’s Robotaxi Ambitions Face Setback as Dojo Supercomputer Gets Scrapped

Tesla's stock faces renewed skepticism as the company abandons its Dojo supercomputer project, a key component in developing its Full Self-Driving technology. Elon Musk's bold claim about removing safety drivers from Austin-based robotaxis by year-end now confronts engineering realities.

The trillion-dollar autonomous driving thesis—central to Tesla's premium valuation—shows cracks. While Musk's vision continues attracting investors, the termination of Dojo represents an 'evolutionary dead end' for hardware crucial to achieving full autonomy. Market watchers note this development follows years of unfulfilled promises in the self-driving space.

Tesla shares continue trading at automotive sector-defying multiples, reflecting persistent bets on Musk's ability to transform transportation. Yet with the Dojo setback, analysts question whether software updates alone can deliver the robotaxi future priced into the stock.