Tesla will tentatively begin offering public rides in driverless robotaxis in Austin, Texas on 22 June, according to Elon Musk, marking the long-delayed debut of a service he first promised back in 2019.
A Delayed Vision Finally Approaches Reality
Tesla (and SpaceX) boss Elon Musk has been claiming for years that fully autonomous Teslas were just around the corner. For example, in 2019, he said Tesla would have a million driverless cars on the road by 2020. Instead, the company spent years refining its Full Self-Driving (FSD) software and shifting its hardware strategy, meaning that the commercial robotaxi launch never materialised, until now.
Rollout in Austin, Texas
Musk now says that Tesla’s planned launch in Austin will involve a small fleet of around 10 to 20 Model Y SUVs operating within a geofenced zone of the city. These vehicles will use what Musk has called “FSD Unsupervised”, meaning they are intended to operate without a human driver behind the wheel. Musk stated in a post on X: “Tentatively, June 22. We are being super paranoid about safety, so the date could shift.”
Spotted
The announcement came just days after testing vehicles were spotted in southeast Austin with the word “Robotaxi” printed on them. In a separate post, Musk also claimed that from 28 June, “the first Tesla that drives itself from factory end of line all the way to a customer house” will take place, something he has described as a major milestone in autonomous production.
What Exactly Is a Robotaxi?
A robotaxi is a fully autonomous vehicle that provides taxi services without a human driver. The idea is that a customer can summon a vehicle via an app, ride to their destination, and exit, all without interacting with a human operator. Tesla’s version of the service will begin in a limited area, with remote monitoring for safety.
Following Waymo and Cruise
It should be noted that Tesla is not the first company to the market with a robotaxi service. For example, Tesla’s approach resembles that of competitors like Waymo and Cruise, who also began robotaxi rollouts in restricted zones under strict conditions. Waymo, for example, already operates commercially in Phoenix and parts of San Francisco and Los Angeles. Cruise, backed by General Motors, had a promising start but suspended operations in late 2023 following a pedestrian injury incident that drew regulatory scrutiny.
Why It Took So Long
The idea of self-driving cars has been around for over a decade, but mass-market deployment has proven far more difficult than early estimates suggested. In Tesla’s case, the core challenge has been both technical and regulatory.
For example, Tesla’s FSD system has been under investigation by the US National Highway Traffic Safety Administration (NHTSA) following multiple incidents involving crashes, some reportedly due to the software’s failures in low-visibility conditions. In one case, a pedestrian was killed.
While Tesla has previously claimed that all its cars since 2016 had the necessary hardware for autonomy, Musk admitted earlier this year that many vehicles will require upgrades to run the current FSD software. The company has now moved to a vision-only system, removing radar and LiDAR, a decision that has been widely criticised by autonomous vehicle experts.
Data Troubles Too
There is also the matter of data. Unlike Waymo, which maps its operating areas in detail using high-definition 3D maps, Tesla has tried to rely on neural networks trained on massive volumes of driving footage. This has made scaling difficult and introduced variability that regulators have found hard to approve.
Musk’s Image and Its Impact on Tesla
Elon Musk’s personal brand has become increasingly polarising in recent years. His public alignment with cryptocurrency memes, his vocal support for Dogecoin, and a turbulent relationship with Donald Trump have drawn both criticism and ridicule. While once celebrated for visionary innovation, Musk has also faced backlash over controversial posts, involvement with DOGE, erratic business decisions, and mass layoffs at several of his companies.
More recently, Musk’s role in advising Trump (followed by a very public fallout) has alienated large segments of Tesla’s consumer base, particularly in Europe. Tesla’s EV sales have shown signs of slowing, with increased competition from Chinese automakers and established rivals in Europe and the US. This has placed added pressure on the robotaxi rollout to deliver fresh growth.
Why Austin?
It seems that Austin is a strategic choice for a rollout for several key reasons. Texas has relatively permissive regulations around autonomous vehicle testing and deployment, especially compared to states like California. Also, Tesla already has a significant presence in Austin through its Gigafactory, and the area offers a variety of suburban and semi-urban driving conditions ideal for early robotaxi trials.
Start in the “Safest” Areas
The service will begin only in the “safest” areas of Austin, Musk has said. Vehicles have been repeatedly seen mapping and testing routes in the same neighbourhoods in southeast Austin. This narrow initial footprint allows Tesla to mitigate risk while gathering user data and refining its service.
What’s at Stake for Tesla and the Industry
At this point for Tesla and Musk, the financial stakes are high. Tesla has pivoted sharply away from its earlier strategy of producing affordable EVs for the mass market. Instead, it now appears to see autonomy, and robotaxis specifically, as its key to future growth. If successful, the robotaxi service could create a powerful new revenue stream with high margins and recurring user engagement.
For Tesla, therefore, this launch is not just a new product but is a test of its ability to deliver on technological promises that have been years in the making. It is also a reputational gamble. Any high-profile failure could undermine consumer confidence and invite further regulatory scrutiny, and further criticism or damage to the Musk brand.
For the wider industry, Tesla’s move is likely to intensify competition. Waymo, Zoox (Amazon-owned), and Apple’s long-rumoured autonomous vehicle programme will all be watching closely. A working Tesla robotaxi in a live environment could reignite investor interest in autonomy after a period of cooling.
Urban Mobility
If Tesla can prove its model works safely and reliably, the implications for urban mobility may be significant. Businesses could use robotaxis for employee transport, client travel, or local delivery in a cost-effective, on-demand way. Fleet management costs could drop, while ride availability and convenience could increase.
For example, local firms in Austin that rely on staff movement between offices or sites may benefit from more predictable, automated transport. It could also open new possibilities for tourism, hospitality, and customer service sectors where flexible, affordable point-to-point mobility can add real value.
However, some business leaders remain cautious. Liability in the event of an accident, limited coverage areas, and regulatory grey zones still pose challenges. Insurance, data privacy, and workplace policy updates would also need to evolve to support robotaxi use at scale.
Early Enthusiasm Meets Persistent Criticism
Despite the enthusiasm, experts remain wary. Tesla’s refusal to use LiDAR, i.e. a tool nearly all other AV companies rely on for precise spatial mapping, has been called “reckless” by some in the field. Public demonstrations have also drawn criticism. For example, in 2024, a group of safety advocates staged a protest using child-sized mannequins in San Francisco to show that Tesla’s FSD software failed to stop in simulated pedestrian scenarios.
Also, regulators are bound to be watching closely. The NHTSA’s ongoing investigations may yet influence the pace and scope of Tesla’s rollout, and cities with stricter AV policies may not welcome Tesla’s robotaxis without additional testing and third-party validation.
How Others Have Fared in This Space
As noted earlier, Tesla is not the first company to offer driverless ride services. Waymo has been operating in Phoenix since 2020 and has expanded gradually to parts of San Francisco and Los Angeles. Its vehicles use LiDAR, detailed mapping, and a cautious rollout process that has largely avoided major safety incidents.
Cruise, another major player, ran services in multiple US cities but paused all operations after an accident in late 2023 triggered widespread scrutiny and a loss of confidence in its safety protocols. Zoox, owned by Amazon, has been slower to launch but continues to test its purpose-built autonomous shuttles in California and Nevada.
Tesla’s approach is arguably more ambitious, but also riskier. Its reliance on general-purpose AI rather than detailed pre-mapping sets it apart, for better or worse. Whether that gamble pays off now rests, in large part, on the roads of Austin.
China’s Robotaxis Are Already Operating at Scale
While the US and Musk have drawn much of the global attention around autonomous vehicles, it’s worth noting here that China has quietly moved ahead with large-scale robotaxi deployments in several major cities. Companies like Baidu, Pony.ai and AutoX have all launched commercial driverless ride services in selected urban areas, in some cases without any human safety drivers onboard.
For example, Baidu’s Apollo Go service currently operates in cities including Beijing, Wuhan, Chongqing and Shenzhen. In certain districts of these cities, passengers can hail a fully driverless robotaxi using a mobile app, with the vehicle arriving and completing the journey without any human intervention. Baidu has already reported over 3 million autonomous rides completed and says that, in Wuhan, it now runs more than 100 driverless cars each day.
Pony.ai, backed by Toyota, is also operating robotaxi trials in Beijing and Guangzhou and has obtained permits for driverless testing in key urban zones. Meanwhile, AutoX, which is backed by Alibaba, claims to be the first company in China to run a completely driverless fleet in Shenzhen. Its vehicles operate on open roads with no onboard safety driver and no remote monitoring, under the approval of local authorities.
Why Is It Working In China?
China’s progress has been driven in part by a supportive regulatory environment. For example, several cities have introduced staged permission systems for autonomous vehicles, often designating specific districts for testing and public use. These areas are typically well-mapped, controlled and connected, which helps reduce the complexity and risk of operating without a driver.
Unlike Tesla’s reliance on vision-based AI alone, Chinese robotaxi providers typically use a combination of LiDAR, radar, high-definition mapping and vehicle-to-infrastructure data. This hybrid approach has allowed them to demonstrate higher consistency and, so far, avoid high-profile safety failures.
The result is that robotaxis in China are no longer just test cases but have become part of everyday urban mobility for some residents. While the scale remains relatively localised, the maturity of these deployments provides a valuable benchmark for global players, including Tesla.
What Does This Mean For Your Business?
Whether Tesla’s robotaxi launch becomes a turning point for the company or another overhyped milestone will depend heavily on how it performs in the real world. Unlike earlier promises tied to theoretical capabilities, this rollout involves real passengers, real roads, and real expectations. A smooth and safe service could help re-establish confidence in Tesla’s long-term vision and give the company fresh momentum at a time when its EV market share is under pressure and its public image is increasingly tied to the unpredictability of Musk himself.
For regulators, competitors, and the wider public, this trial will serve as a test case for what a driverless future might actually look like. If Tesla’s system operates reliably within its geofenced limits, it could pressure US cities and lawmakers to accelerate AV frameworks and could encourage other providers to speed up their deployments. However, any serious incidents could lead to renewed regulatory clampdowns or stall the broader industry’s progress.
UK businesses, while not directly impacted by the Austin launch, should be watching carefully. If Tesla proves its robotaxi model can be safe, efficient, and scalable, pressure may build for the UK to define clearer policies on AV services. Sectors like logistics, corporate travel, hospitality, and facilities management could all benefit from more flexible, low-emission transport solutions, especially in urban areas facing congestion and net zero targets. It may also prompt innovation across Europe’s mobility sector, where trust, data security, and transparency will be essential.
For now, Tesla’s plan to move from test footage to public fares is quite a bold move. The company has much to prove, both in terms of technology and trust. Whether the robotaxi rollout marks the beginning of a new chapter or another delay in an already chequered timeline remains to be seen.