Tesla launches a limited robotaxi service in Austin on a landmark day for autonomous ambitions

[Cityscape of downtown Austin from the west in Zilker park 2025] BackyardProduction/iStock via Getty Images Tesla (NASDAQ:TSLA [https://seekingalpha.com/symbol/TSLA]) launched a limited version of its robotaxi service in Austin, Texas on Sunday to mark a significant milestone in the company’s goal to become the autonomous driving leader. Social media accounts have already posted pictures of the self-driving vehicles out in the wild. Notably, the initial rollout is highly controlled and invite-only, with access granted primarily to select Tesla (NASDAQ:TSLA [https://seekingalpha.com/symbol/TSLA]) enthusiasts, investors, and social media influencers. The robotaxi service will use Tesla (TSLA [https://seekingalpha.com/symbol/TSLA]) Model Y vehicles equipped with an advanced version of the company’s Full Self-Driving software. The vehicles feature a camera-based sensor suite empowered by AI, which is different from many competitors that use additional sensors like Lidar and radar.

Despite some earlier promises of fully driverless vehicles, Tesla (TSLA [https://seekingalpha.com/symbol/TSLA]) has opted to include a safety monitor or Tesla (TSLA [https://seekingalpha.com/symbol/TSLA]) employee in the front passenger seat for the initial rollout. The driver's seat will remain unoccupied during rides. CEO Elon Musk previously told reporters that there may be fewer than a dozen cars in Austin on Sunday and that the vehicles will stick to specific geo-fenced neighborhoods as the company displays an abundance of caution. Just ahead of the launch, Texas Governor Greg Abbott inked legislation requiring a permit to operate self-driving vehicles. The governor's action places the automaker in the position of choosing whether to proceed with a rollout it might have to terminate before September 1.

The new law requires autonomous-vehicle operators to get approval from the Texas Department of Motor Vehicles before operating on public streets without a human driver, and gives state authorities the power to revoke permits if they deem a driverless vehicle endangers the public. Last week, Wedbush Securities analyst Dan Ives reiterated that the firm estimated the AI and autonomous opportunity is worth at least $1 trillion alone for Tesla (TSLA [https://seekingalpha.com/symbol/TSLA]). "We fully expect under a Trump White House, these key initiatives will now get fast tracked as the federal regulatory spiderweb that Musk & Co. have encountered over the past few years around FSD/autonomous clears significantly under Trump. The BFF/frenemy situation with Musk and Trump has created a soap opera on this front, but ultimately Trump wants the US to stay ahead of China in this AI Arms Race and autonomous is a key factor in who wins AI....with Tesla playing a major role on robotaxis," he highlighted.

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