Musk's Tesla is launching robotaxis in Austin, Texas

CNBC

22-06-2025

After driverless Tesla Model Ys were spotted traversing Austin, Texas, streets on Sunday morning, CEO Elon Musk posted on his social platform X that Tesla's "robotaxi launch" would start this afternoon with rides for a flat fee of $4.20.
A Reuters witness saw several Tesla "robotaxis" on Sunday morning in a popular area of the Texas capital called South Congress with no one in the driver's seat but one person in the passenger seat.
Tesla planned to have front-seat riders acting as "safety monitors," though it remained unclear how much control they would have over the vehicles. Videos of driverless Teslas have also been posted on social media but it was not known if the vehicles carried any passengers.
As the date of the planned robotaxi launch approached, Texas lawmakers moved to enact rules on autonomous vehicles in the state. Texas Gov. Greg Abbott, a Republican, on Friday signed legislation requiring a state permit to operate self-driving vehicles.
The law does not take effect until Sept. 1, but the governor's approval of it on Friday signals state officials from both parties want the driverless-vehicle industry to proceed cautiously. A group of Democratic state lawmakers earlier this week asked Tesla to delay its planned robotaxi trial because of the legislation.
Tesla did not respond to requests for comment. The governor's office declined to comment.
The law softens the state's previous anti-regulation stance on autonomous vehicles. A 2017 Texas law specifically prohibited cities from regulating self-driving cars.
In recent days, Tesla has sent invites to a select group of Tesla online influencers for a small and carefully monitored robotaxi trial, which the company has said would include 10 or 20 Model Y vehicles operated in a limited zone of Austin.
The law requires autonomous-vehicle operators to get approval from the Texas Department of Motor Vehicles before operating on public streets without a human driver. It also gives state authorities the power to revoke permits if they deem a driverless vehicle "endangers the public," and requires firms to provide information on how police and first responders can deal with their driverless vehicles in emergency situations.
The law's requirements for getting a state permit to operate an "automated motor vehicle" are not particularly onerous but require a firm to attest it can safely operate within the law.
It defines an automated vehicle as having at least "Level 4" autonomous-driving capability under a recognized standard, meaning it can drive itself with no human driver under specified conditions, such as within a limited area.
Level 5 autonomy is the top level and means a car can drive itself anywhere, under any conditions.
Compliance remains far easier than in some states, most notably California, which requires extensive submission of vehicle-testing data under state oversight.
The Tesla robotaxi launch, which the company warned might be delayed, comes after more than a decade of Musk's unfulfilled promises to deliver self-driving Teslas.
Most of Tesla's sky-high stock value now rests on its ability to deliver robotaxis and humanoid robots, according to many industry analysts. Tesla is by far the world's most valuable automaker.
Musk has said Tesla would be "super paranoid" about safety for the Austin rollout. The company planned to operate only in areas it considered the safest.
The service in Austin will have other restrictions as well. Tesla plans to avoid bad weather, difficult intersections, and will not carry anyone below the age of 18. Musk has said he is ready to delay the start for safety reasons, if needed.
The planned launch has generated buzz among Tesla fans.
"Wow. We are going to ride in driverless Teslas in just a few days. On public roads," posted Omar Qazi, who has 635,200 followers on X, writes often about Tesla using the handle @WholeMarsBlog, and received an invite.
Commercializing autonomous vehicles has been risky and expensive. GM's Cruise was shut down after a fatal accident and regulators are closely watching Tesla and its rivals, Alphabet's Waymo, which runs a paid robotaxi service in several U.S. cities, and Amazon's Zoox.
Tesla is also bucking the young industry's standard practice of relying on multiple technologies to read the road, using only cameras. That, Musk says, will be safe and much less expensive than lidar and radar systems added by rivals.