Tesla took its first significant step into the autonomous ride-hailing market on Sunday, June 22, as a small fleet of its self-driving vehicles began picking up paying passengers in Austin, Texas.
The limited launch, which Elon Musk has described as being "super paranoid about safety," features approximately 10 Model Y SUVs operating without drivers but with Tesla employees serving as "safety monitors" in the front passenger seats. The vehicles are restricted to a narrowly defined area in South Austin and will not operate in inclement weather or carry passengers under 18 years old.
"Culmination of a decade of hard work," Musk wrote on his social media platform X, highlighting that "the AI chip and software teams were built from scratch within Tesla." The vehicles are equipped with what Tesla describes as a new "unsupervised" version of its Full Self-Driving software, though the company is using remote monitoring and geofencing to limit operational risks.
The initial riders were primarily Tesla investors and social media influencers, who generally reported positive experiences. "No-one is in the driver seat and the safety monitor in the passenger seat does not have a steering or pedals," wrote Tesla fan Sawyer Merritt after his first ride. "It was awesome." However, at least one rider reported needing assistance from Tesla's remote support team during their journey.
Industry experts note that while this launch represents a milestone for Tesla, significant challenges remain in scaling the service. Philip Koopman, a Carnegie Mellon University computer-engineering professor specializing in autonomous vehicle technology, described a successful Austin trial as "the end of the beginning - not the beginning of the end."
Tesla's approach differs from competitors like Waymo, which has been operating commercial robotaxis in multiple cities including Austin. While Waymo uses lidar and radar systems in addition to cameras, Tesla relies solely on cameras, which Musk claims will be "safe and much less expensive."
The robotaxi launch comes at a critical time for Tesla, which has seen its stock price fluctuate following Musk's controversial stint in the Trump administration. Wall Street analysts like Wedbush's Dan Ives believe robotaxis could help Tesla reach a $2 trillion market cap by the end of 2026 if the technology proves successful.