Tesla Stock Drops 5% After YouTube Video Exposes Autopilot Flaws

Tesla (NASDAQ: TSLA) shares fell 5% on Monday, underperforming the broader market’s 0.6% gain. Meanwhile, Luminar Technologies (NASDAQ: LAZR), a leading LiDAR maker, surged 27.5%. The market shift follows a viral video by YouTuber Mark Rober, a former NASA engineer with 65 million subscribers, comparing Tesla’s autopilot to LiDAR-equipped vehicles.

In Rober’s tests, LiDAR consistently outperformed Tesla’s system. When exposed to simulated fog and heavy rain, Tesla’s autopilot failed to detect a child-sized dummy, resulting in a collision, while LiDAR-equipped vehicles stopped safely. Under bright light, both systems functioned, but in another test involving a painted brick wall, Tesla drove straight through, whereas LiDAR stopped.

The video raises concerns as Tesla aims to launch its Robotaxi service by June 2025. With Tesla stock already down 38% year-to-date, this latest controversy adds pressure on the EV giant. Investors are increasingly scrutinizing Tesla’s reliance on camera-based autonomous technology over LiDAR, which many experts argue offers superior detection in adverse conditions.

As competition in autonomous driving intensifies, this viral exposure could further impact Tesla’s credibility and stock performance.