Tesla launches Robotaxi service in Austin

Tesla RoboTaxi on the streets of Austin. | Credit: Heute.at, used under a Creative Commons License. The image was expanded at the top and bottom using Generative Expand in Photoshop.

Tesla Inc. this week officially launched its highly anticipated Robotaxi service in Austin, Texas. This marks a significant step in CEO Elon Musk’s long-held vision for autonomous ride-hailing. The company is following competitors that include Waymo, Zoox, and Motional.

Waymo was a 2025 RBR50 Robot of the Year honoree, and its service is currently offering 250,000 paid rides per month. Motional CEO Laura Major described her company’s upcoming rollout in Las Vegas on the latest episode of The Robot Report Podcast. Zoox is already engaged in a limited rollout in Las Vegas.

The Tesla Robotaxi service is using a small fleet of Tesla Model Y vehicles equipped with the company‘s “Full Self-Driving” (FSD) software. The service in Austin is only offering rides to a select group of investors and influencers. The service is limited to clear weather days, but the autonomous vehicles are operating both at night and during the day.

Riders test Tesla Robotaxi

In an homage to pot-smoking culture, passengers pay a flat fee of $4.20 per ride, regardless of distance. While the vehicles are operating autonomously, a Tesla safety monitor is present in the passenger seat for all rides, and the company is reportedly monitoring the vehicles remotely.

Some of the issues reported by riders in Austin during the first week of service include veering into the oncoming traffic lane and multiple issues with dropping off passengers at safe zones. Many riders have complained about issues setting pins for pickup and dropoff in the app.

Beyond that, most of the videos posted by riders appear to be positive and without incident. It’s worth noting that the initial passenger group consists primarily of Tesla fans, investors, and automotive influencers.

I have ridden in a privately owned Tesla equipped with FSD, and the technology confidently drove the vehicle from Point A to Point B with no driver assistance or interaction. I have also ridden in a Zoox robotaxi through Las Vegas, and the ride was comfortable and the AI driver was confident. However, that robotaxi ride was only on surface streets.

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