Tesla just quietly launched its first robotaxi fleet in Austin, and the first invited riders are already buzzing about experiencing the futu...
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| Tesla just quietly launched its first robotaxi fleet in Austin, and the first invited riders are already buzzing about experiencing the future. |
Each robotaxi ride costs just $4.20, a cheeky nod from Musk, and operates daily between 6 a.m. and midnight. The vehicles used are modified Tesla Model Ys, running on the company's controversial Full Self-Driving (FSD) Beta software, now deployed in “unsupervised” mode. Tesla relies exclusively on vision-based AI—no LiDAR, no radar—which sets it apart from competitors like Waymo and Cruise.
Early riders have described the experience as “eerily smooth” and “almost human,” though others noted minor issues like abrupt stops and slight lane drifting. Still, compared to legacy autonomous vehicle startups, Tesla’s robotaxis are already moving people on public roads—an achievement many doubted would happen this soon.
According to Reuters’ analysis, launching a geofenced fleet is the easy part. Scaling to a nationwide service—or Musk’s vision of millions of Cybercabs—is the true challenge. Issues like edge-case failures, regulatory scrutiny, insurance liability, and public trust remain unsolved.
One significant hurdle is legal compliance. New rules under consideration by the U.S. Department of Transportation and NHTSA may soon require AV operators to meet Level 4 autonomy standards, include emergency override protocols, and disclose safety metrics—areas where Tesla’s camera-only approach remains controversial.
Musk, however, remains confident. He teased the full reveal of Tesla’s dedicated robotaxi—designed without a steering wheel or pedals—set for August 8. That vehicle, currently in prototype form, will reportedly enter production in late 2025 and will play a central role in Tesla’s upcoming “Autonomy Day 2.”
The financial world is watching closely. Tesla stock jumped modestly following the Austin launch and has gained more than 30% since Musk reaffirmed robotaxi timelines in April. Analysts at Wedbush Securities remain bullish, calling robotaxis Tesla’s “iPhone moment”—a massive margin opportunity once scaled.
But Tesla is not alone. Waymo operates a large driverless fleet in Phoenix, San Francisco, and Los Angeles, while Cruise (a GM subsidiary) continues testing despite setbacks. Unlike Tesla, these companies rely on LiDAR and HD mapping to ensure safety. Whether Tesla’s end-to-end neural net system can outperform them remains the billion-dollar question.
For now, Tesla is treating Austin as a real-world testbed. Only hand-picked riders can use the app, and the routes avoid tricky intersections and highways. But if all goes to plan, the company could expand rapidly into cities like San Francisco, Los Angeles, and Miami, eventually allowing Tesla owners to opt their vehicles into a decentralized ride-hailing network—like Airbnb meets Uber.
The promise is enticing: a fleet that never sleeps, costs less to operate, and could one day replace both car ownership and traditional ride-hailing. But critics warn that overconfidence, software limitations, and a still-uncertain regulatory landscape may slow Tesla’s ambitions. As one analyst put it: “Tesla is trying to land on Mars before solving traffic in Manhattan.”
