Tesla CEO Elon Musk announced on Sunday that their self-driving taxi service, “Robotaxi,” made its debut in Austin, Texas during a trial operation period. The fare for each ride is set at $4.20.
Musk shared on the X platform, “@Tesla_AI’s Robotaxi launch event officially kicked off in Austin this afternoon, with passengers only needing to pay a fixed fee of $4.20!”
He expressed that this achievement is the culmination of a decade of hard work, highlighting Tesla’s AI chip and software team which was built from scratch.
Several industry analysts believe that Tesla’s high stock valuation largely depends on advancing future technologies such as Robotaxi and humanoid robots. Musk also envisions Robotaxi becoming the company’s main source of revenue in the future.
Currently, Tesla is operating around ten Model Y vehicles in specific areas of Austin, offering invited passengers the opportunity to ride in the Robotaxi. Each vehicle is equipped with a “safety monitor” sitting in the front passenger seat to ensure passenger safety. After the launch event, several influencers uploaded videos of their initial test rides.
Tesla investor and prominent blogger Sawyer Merritt showcased on the X platform how he used the Robotaxi app to hail rides, the pick-up process, and his journey to a nearby bar and restaurant, Frazier’s Long and Low.
Reportedly, Tesla’s future Robotaxi model, CyberCab, will operate entirely without human intervention, featuring design elements that eliminate the need for a steering wheel and pedals, with production expected to start in 2026. Additionally, the company is also developing the Robovan model to accommodate more passengers.
During a previous earnings conference call, Musk mentioned that Tesla owners could opt to rent out their vehicles as Robotaxis when they are not in use. It is reported that the next step for Musk is to introduce Robotaxi services in San Francisco and Los Angeles.
As the launch date for Robotaxi approaches, the Texas legislature is working on establishing regulations for autonomous vehicles. Governor Greg Abbott signed a bill last Friday requiring self-driving vehicle operators to obtain state government approval to operate, effective September 1.
The new regulations mandate that autonomous vehicle companies provide relevant information to allow emergency responders to correctly identify and safely handle these self-driving vehicles in emergencies. The legislation defines “autonomous vehicles” as those equipped with at least Level 4 autonomous driving technology, meaning these vehicles can operate without human intervention under specific conditions (such as certain road segments, weather, and time), autonomously.
While the requirements for obtaining operating permits are not overly stringent, companies must ensure that their autonomous vehicles can operate legally and safely.
However, industry experts believe that despite Tesla’s success in this small-scale Robotaxi trial operation, achieving Musk’s promise to offer services in Austin and other cities still poses many significant difficulties and challenges.
Carnegie Mellon University computer engineering professor Philip Koopman stated that Tesla and self-driving competitors such as Waymo, a subsidiary of Alphabet, may need several years or even decades to fully develop the Robotaxi industry.
Currently, Waymo operates self-driving ride-hailing services in Phoenix, San Francisco, Los Angeles, and Austin, with plans to expand to Atlanta, Miami, and Washington, D.C. As of May, Waymo completes over 250,000 paid rides per week.