On June 22, 2025, Tesla Inc. launched its first public robotaxi service in Austin, Texas, marking a significant milestone in the company’s pursuit of autonomous mobility. The pilot program features a fleet of approximately 10 to 20 modified Model Y vehicles operating within a geofenced area, offering rides to select users for a flat fee of $4.20.
Each vehicle is equipped with Tesla’s Full Self-Driving (FSD) software and includes a human safety monitor in the front passenger seat to intervene if necessary. The service operates daily from 6 a.m. to midnight within designated zones of downtown Austin, such as South Congress and areas near St. Edward’s University.
Access to the service is currently invitation-only, targeting Tesla enthusiasts and influencers. Users can request rides through a dedicated app, experiencing autonomous travel while Tesla employees monitor the vehicles remotely.
CEO Elon Musk described the launch as the culmination of a decade of development, emphasizing the company’s commitment to advancing autonomous transportation. He credited Tesla’s in-house AI and chip teams for building the technology internally.
The launch comes amid increased regulatory scrutiny. A new Texas law requiring permits for autonomous vehicles is set to take effect in September 2025. Local lawmakers had urged Tesla to delay the launch until compliance with the law could be verified, but the company proceeded without public confirmation of meeting legal requirements.
Tesla plans to expand the robotaxi program to additional cities, including San Francisco and Los Angeles, pending regulatory approvals and infrastructure readiness. The company also aims to introduce two new autonomous vehicles—the Cybercab and Robovan—by 2026, featuring no steering wheels or pedals.
The robotaxi launch has positively impacted Tesla’s stock, with shares rising 8.2% to $348.68 following the announcement. Analysts remain divided on the long-term financial implications, with some cautioning that the robotaxi opportunity may already be priced into the stock.
As Tesla navigates the complexities of autonomous vehicle deployment, the success of the Austin pilot program will be closely watched by industry stakeholders and regulators alike. The company’s ability to scale the service while ensuring safety and regulatory compliance will be critical to its ambitions in the autonomous ride-hailing market.
