After a long wait Elon Musk-led EV giant Tesla has finally launched its robotaxi operations on public streets in Austin, Texas. The company deployed a handful of self-driving Model Y electric cars without a human behind the wheel, a big step toward Elon Musk's dream of an autonomous taxi system.
The electric carmaker has introduced a small fleet of fully autonomous Model Y vehicles that will whisk paying passengers to select locations for a flat fee of $4.20. Although there is no human in the driver's seat, a Tesla employee is sitting in the front passenger seat as a safety monitor. These rides are limited, for now, to certain parts of Austin, and only to select recipients — frequently, local influencers invited to share their rides on social media.
The system is enabled by Tesla's self-driving software, called Full Self-Driving (FSD). It motors around with the help of eight onboard cameras but Skipping the lidar and radar tech favored by rivals. Tesla is betting that just using cameras will prove more efficient and cheaper over time. But also, it's raised questions about whether it will prove as dependable as others systems equipped with all manner of sensors.
The company intends to tread carefully with this rollout. To qualify, riders must be over 18 years old. Rides are limited during bad weather, and challenging intersections are being avoided. Tesla is also monitoring the vehicles remotely to assist passengers if needed. Elon Musk emphasized that safety is a top priority and said this milestone was achieved through 10 years of internal development by Tesla's software and AI chip teams.
This trial comes as Texas prepares to update its regulations for self-driving vehicles. A new law, taking effect on September 1, requires companies to obtain state permits before operating driverless cars. It also allows Texas officials to revoke permits if safety concerns arise. Compared to states like California, Texas' model is more relaxed, yet it still includes meaningful oversight. The law defines an autonomous vehicle as one capable of operating at Level 4 automation — meaning it does not require a human driver under specific conditions.
Tesla faces stiff competition. Waymo, Google's corporate parent Alphabet's self-driving ride-sharing unit, already offers more than 250,000 driverless rides per week across cities including San Francisco and Phoenix. Amazon's Zoox is also testing its service in several U.S. cities. These other companies have been cautious, deliberate, and strong in building relationships — something Tesla will also need to focus on.
In the future, Tesla plans to supply its own vehicles that are purpose-built for robotaxi service. These include a compact, sleek "Cybercab" and its larger counterpart, a van the company calls the "Robovan" — both designed without a steering wheel or pedals. Elon Musk has said they could be ready by 2026. He also believes robotaxis could ultimately add up to $10 trillion in value to Tesla.
