Prime Highlights
- Tesla CEO Elon Musk said public robotaxi rides will be launched tentatively in Austin on June 22.
- The launch will initially take place using a small fleet of Tesla Model Y cars with Full Self-Driving (FSD) software.
Key Facts
- 10 to 20 Model Y cars will kick off the program with remote oversight.
- The service is to be extended after an opening safety-oriented phase, with a target to reach 1,000 vehicles in months.
- Tesla cars will also begin dropping off by themselves from June 28.
Key Background
Tesla’s highly anticipated autonomous ride-hailing service seems to be finally gaining traction, as Elon Musk revealed a preliminary launch date of June 22 for the company’s first public robotaxi rides. The pilot program will be conducted in Austin, Texas, utilising a small number of 10 to 20 Tesla Model Y vehicles powered with Tesla’s Full Self-Driving software but without additional special hardware upgrades.
The shift is the next major step in Tesla’s ultimate goal to move from car maker to autonomous mobility company. Musk has made a series of ambitious assertions over the years about the potential of Tesla to achieve level five autonomy, but deadlines have continually slipped. In an attempt to set expectations, he characterized the upcoming release as being “super paranoid” about safety and attested that the system will be overseen remotely. Operations will be geofenced as well, such that the robotaxis will only move within predetermined safe areas in the city.
Tesla is beginning in Texas because of regulatory benefits—Texas state law prevents individual cities from outlawing autonomous vehicle operations. But for the sake of safety, new legislation has been introduced that may permit state authorities to cancel AV permits for companies that are risks to public safety. These regulations are likely to become active in 2026.
Tesla’s robotaxi service is being closely watched by U.S. federal regulators. The National Highway Traffic Safety Administration (NHTSA) has requested detailed information about the upcoming launch, including vehicle safety features, emergency handling protocols, and data on past performance. This follows a number of investigations into Tesla’s Full Self-Driving software and several incidents, including a fatal crash in 2023.
Additional information regarding how the ride-hailing service will work—pricings, access, and zones of rides—have not yet been released. But Musk has signaled that, in the future, Tesla owners might be able to put their cars on a shared robotaxi network, kinda like an Airbnb for cars.
With slowing car sales and mounting pressure from competitors such as Waymo and Cruise, Tesla is wagering big on autonomy to fuel its next leg of growth. All eyes are on Austin and the success—or failure—of this historic experiment for now.
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