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Tesla's (TSLA) foray into the world of driverless cars won't be without a few speed bumps.

One of them is getting travel times down to be in line with those of a human driver.

Deutsche Bank analyst Edison Yu experienced this challenge firsthand in a recent robotaxi ride in downtown Austin, Texas, in "solid" traffic.

"Our ride included a safety monitor in the front passenger seat," Yu detailed in a new note. "The monitor (who works 8-hour shifts) didn't have to intervene once, but his presence was a reminder that we are still in the 'validation' phase of the robotaxi rollout despite reports on selective monitor out."

"From a technology perspective, the experience was impressive and seamless," Yu said. "In dense traffic, the vehicle was able to handle merges, initiate lane change signals, and navigate around a truck that changed lanes. The only frustration was perhaps the route logic. The car appeared to have opted for a significant detour to avoid a certain route it isn’t yet authorized to use. While a human driver would have likely muscled through the traffic on the highway, the system prioritized more local routes, turning a 20-minute trip into nearly 40 minutes. Ultimately, we think this issue will solve for itself once operating parameters expand further."

The total trip cost was $17.35.

Tesla's stock could use a jolt of Elon Musk magic, especially on the robotaxi rollout front. The stock is down about 20% this year, making it the worst-performing member of the "Magnificent Seven."

Its poor performance reflects several factors.

Tesla delivered 358,023 vehicles in the first quarter, missing analyst estimates of 366,000 to 370,000 units. Although this represents a 6.3% increase year over year, the growth came from a depressed baseline, and the absolute numbers showed a significant sequential decline from the record-breaking fourth quarter of last year.

The expiration of the $7,500 federal electric vehicle tax credit at the end of last year dealt a major blow to US demand. Additionally, persistent high interest rates have made vehicle financing more expensive for the average buyer.

Read more: How to avoid the sticker shock on Tesla car insurance

Meanwhile, Tesla is facing brutal pressure from Chinese electric vehicle rivals like BYD (BYDDY), as well as legacy automakers such as Mercedes-Benz (MBG.DE), General Motors, and Ford (F). They have continued to forge ahead with EV production, albeit at a slower pace.

"I think what Elon constantly does is he looks at what is the existential threat to the business right now," former Tesla president Jon McNeill said in a new episode of the Opening Bid Unfiltered podcast.

For Tesla, it means "you have to have autonomous cars because nobody's going to choose a car that doesn't become a chauffeur if they have a choice," McNeill added. "And the second is you've got to be a low-cost manufacturer. And the proxy for that is robotics ... And so [Musk] focuses just on those two things."

To keep Tesla bulls engaged, Musk is promising 2026 will be a big year for new products.

Tesla’s dedicated robotaxi (aka Cybercab), a vehicle designed without a steering wheel or pedals, is slated to begin initial production this month. It will be at the center of Tesla's new autonomous ridesharing network that is expected to roll out more aggressively throughout 2026.

It will pit Tesla against the likes of Google-backed (GOOG) Waymo, Zoox, and more traditional ride sharing players in Uber (UBER) and Lyft (LYFT).

Musk is also accelerating the training of its Optimus humanoid robot, aiming to deploy it for "repetitive or boring tasks" within its own factories by the end of the year.

Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.

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