Tesla launched its first paid robotaxi service in Austin, Texas, on Sunday, deploying a small fleet of autonomous Model Y vehicles equipped with remote supervision and in-car safety monitors. CEO Elon Musk declared the pilot program live with a post on X, writing: "The @Tesla_AI robotaxi launch begins in Austin [Sunday] afternoon with customers paying a $4.20 flat fee!"
The rollout marks a significant milestone for Tesla as it attempts to deliver on Musk's long-standing promise to commercialize self-driving vehicles. Teslas were seen operating without drivers behind the wheel but with a Tesla employee in the passenger seat to intervene if necessary. Only select users were invited to participate, riding within a geofenced area of Austin.
This is the “culmination of a decade of hard work," Musk said on X. "The AI chip and software teams were built from scratch within Tesla."
Tesla stock rose 1.7% in premarket trading Monday following the news.
Social media users posted videos of their experiences hailing the robotaxis. One user, Sawyer Merritt, showed a ride to a bar and restaurant using a Tesla app. Analyst Dan Ives of Wedbush described the 15-minute rides as "a comfortable, safe, and personalized experience." He highlighted the robotaxi's ability to navigate narrow roads with oncoming traffic and pedestrians. "It masterfully maneuvered with patience and safety among this chaos," Ives wrote in a note.
Tesla's system also allows users to sync their Tesla accounts with the ride, loading apps like Netflix, Spotify, and Hulu. Ives called the rollout "foundational" and said it could pave the way for future enhancements including Grok integration and full interior customization.
Despite the early success, Tesla faces hurdles in scaling the operation to meet Musk's ambition of having "millions" of robotaxis on the road by 2026. Experts, including Carnegie Mellon professor Philip Koopman, warned that commercializing robotaxi services remains an enormous challenge. Koopman noted that a successful trial in Austin would be "the end of the beginning - not the beginning of the end."
The robotaxi trial coincided with new autonomous vehicle legislation signed Friday by Texas Governor Greg Abbott. The law requires companies to obtain a state permit from the Texas Department of Motor Vehicles before operating fully driverless cars on public roads. It defines autonomous vehicles as needing Level 4 capabilities and allows permits to be revoked if safety concerns arise.
"California permits are hard to get, easy to lose," said Bryant Walker Smith, a University of South Carolina law professor. "In Texas, the permit is easy to get and easy to lose."
Tesla's approach diverges from industry standards by relying solely on cameras for navigation, rather than using lidar or radar technologies. Musk contends the system is both safer and more cost-effective.
Tesla joins a crowded and volatile field of autonomous vehicle firms. General Motors' Cruise division was suspended following a pedestrian accident, while rivals Waymo and Amazon's Zoox remain under close regulatory scrutiny. Musk emphasized that Tesla will remain "super paranoid" about safety during the Austin rollout, limiting operations to specific zones, avoiding bad weather, and excluding riders under 18.
