Tesla (TSLA) to Launch Robotaxis in Austin Amid Regulatory, Safety Questions

June 12, 2025 05:04 AM PDT | By EODHD

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Tesla (TSLA) to Launch Robotaxis in Austin Amid Regulatory, Safety Questions — Image source: Kalkine Media

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Tesla (TSLA, Financials) is set to launch its first fleet of robotaxis in Austin, Texas, this month as CEO Elon Musk shifts focus from mass-market electric vehicle production to autonomous ride-hailing technology. The rollout, involving 10 to 20 Model Y vehicles, is slated to begin tentatively on June 22, according to Musk. The announcement follows years of missed deadlines and unfulfilled self-driving promises. Tesla's Austin launch comes amid lagging EV sales and mounting investor reliance on future tech bets like robotaxis and humanoid robots to justify the company's market cap. Tesla has released few specifics on the program, saying the vehicles will use a new version of its software but remain unmodified.

There's no public information yet on ride pricing, passenger eligibility, or geographic coverage beyond Musk's comment that the robotaxis will be limited to safest parts of Austin and monitored remotely. Texas does not currently require permits or oversight for autonomous vehicle launches. While a new statewide bill introducing authorization requirements has passed, it won't take effect until 2026. The National Highway Traffic Safety Administration has asked Tesla to provide detailed information on the Austin rollout, including safety features, accident protocols, and operational plans. The request follows a fatal crash linked to Tesla's Full Self-Driving software, which is still under investigation.

Austin police say autonomous vehicles from competitors like Waymo and the now-suspended Cruise have struggled in dynamic environments, such as festivals and manually directed traffic zones. Tesla's system is expected to rely on remote teleoperators to step in when needed. Experts remain skeptical. Having 10 cars on the road and not having a crash is sort of table stakes for this game, said Carnegie Mellon University's Phil Koopman, a specialist in autonomous vehicle safety. Tesla did not comment on how many passengers will participate in the early phase or whether the company will charge for rides.

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