Tesla has officially launched the initial phase of its long-anticipated Robotaxi service in Austin, Texas, marking a cautious but notable step toward the company’s goal of fully autonomous ride-hailing.
The pilot, which began on Sunday, involved a small fleet of Model Y vehicles operating in restricted areas, each accompanied by a safety observer in the passenger seat.
The launch—more than a decade after CEO Elon Musk first introduced the concept—was limited to a select group of Tesla investors and social media influencers. Passengers shared their experiences online, noting the absence of a driver and highlighting that the vehicles are monitored for safety. Despite the limited scale, Musk called it the “culmination of a decade of hard work,” while emphasizing the company is being “super paranoid about safety.”
While Tesla positions the Robotaxi program as central to its future, its debut comes at a time of heightened regulatory and political attention. The National Highway Traffic Safety Administration (NHTSA) has ongoing investigations into Tesla’s driver assistance systems and has requested details about the Robotaxi’s safety protocols. The agency confirmed it had received a response from Tesla and is currently reviewing the information.
Austin was selected for the pilot in part due to Texas’ relatively relaxed regulatory environment for autonomous vehicles. However, a new state law taking effect in September will tighten requirements for commercial autonomous operations, including mandatory authorization from the Department of Motor Vehicles. A group of Democratic state lawmakers had urged Tesla to postpone the launch until those rules were in place.
For now, the Robotaxi service is being conducted in Model Y vehicles, rather than the more radical “Cybercab” — a steering wheel-free concept vehicle unveiled by Tesla last year and projected to retail for under $30,000. That vehicle is still in development and not expected to debut for several years.
Musk noted that the pilot rides are being priced at a flat rate of $4.20, though the service currently operates only within a confined area and avoids complex driving environments. The company has also launched a sign-up page for those interested in receiving updates or trying the service in the future.
Tesla’s Robotaxi ambitions place it in direct competition with Waymo, Google’s self-driving unit, which has already deployed fully autonomous ride-hailing vehicles in cities including San Francisco, Phoenix, Los Angeles, and Austin. Waymo’s vehicles, which do not include safety drivers, rely on a combination of lidar, radar, and cameras, while Tesla uses only camera-based systems.
Critics have questioned Tesla’s approach. Legal scholar and automated vehicle expert Bryant Walker Smith said Tesla has yet to prove its system can deliver the kind of reliability necessary for broader deployment across diverse road conditions. Analysts have also expressed skepticism about Tesla’s ability to scale the Robotaxi fleet quickly, with Barclays’ Dan Levy cautioning that catching up to or surpassing Waymo will be a significant challenge.
The launch comes during a complex period for Musk and Tesla. While the company’s stock has rebounded from its April lows—buoyed in part by optimism around autonomy—Tesla continues to face headwinds, including declining sales and fallout from Musk’s political engagements. His evolving relationship with the current US administration has created additional uncertainty around the company’s federal support and public image.
The Washington Post and the Financial Times contributed to this report.
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