HSBC analysts are expressing skepticism about the profitability of robotaxis, cautioning that hidden costs could delay returns for years. Despite the rapid development by companies like Tesla and Waymo, the market for driverless taxis may be widely overestimated.

Tesla’s recent launch of its robotaxi service in Austin has sent stock prices soaring, even as incidents caught on camera draw regulatory attention. Elon Musk is betting big on autonomous cabs to revitalize the company amid previous sales slumps.