Tesla has officially launched its long-anticipated robotaxi service in Austin, Texas, marking a significant milestone in CEO Elon Musk's decade-long pursuit of fully autonomous vehicle deployment. On Sunday, June 22nd, a select group of invited users began taking driverless rides in Tesla Model Y SUVs, initiating the company's first public ride-hailing service to operate without a human in the driver's seat on city streets.

This initial rollout represents a crucial test of Musk’s unique strategy: deploying fully autonomous vehicles using only cameras and end-to-end AI. This approach stands in stark contrast to other major players in the autonomous vehicle space, such as Alphabet-owned Waymo, which integrate multiple sensor technologies like lidar and radar. Despite Musk's prior assertions of a "fully unsupervised" experience, the pilot program currently includes a Tesla employee stationed in the front passenger seat as a "safety monitor." These monitors are equipped with a "kill switch" for emergencies but are not intended to intervene via traditional steering or pedal controls. This use of safety monitors during commercial operations is a departure from industry norms, where such supervision is typically limited to the testing phase.

The robotaxi service is operating on a cautious, small scale within a narrowly defined, geofenced area of South Austin, meticulously mapped by Tesla engineers. The service is available daily from 6:00 a.m. to 12:00 a.m., with operations subject to suspension during inclement weather or in complex intersections. Furthermore, the service is restricted from carrying riders under the age of 18. The initial fleet comprises approximately 10 to 20 2025 Model Y SUVs, distinctively branded with "Robotaxi" on their sides, rather than the futuristic "Cybercabs" teased for future deployment.

Early access invitations were extended to vetted customers, many of whom are prominent Tesla online supporters, raising questions about the impartiality of initial public reactions. Rides are offered at a flat promotional fee of $4.20 per trip. Users access the service through an updated Tesla mobile app, which functions similarly to existing ride-hailing platforms like Uber, allowing users to hail rides, select destinations, and sync personal preferences such as music playlists. While most early experiences reported were "smooth" and "uneventful," some minor navigation quirks were noted, including an instance of unexpected braking near police vehicles. One tester also required remote operator assistance, though the specific nature of the issue was not detailed.

The launch comes amid notable information gaps and regulatory developments. Tesla has actively sought to suppress information about the service, attempting to block public records requests from media outlets. Concurrently, Texas Governor Greg Abbott recently signed legislation effective September 1st, requiring state permits for autonomous vehicle operations on public streets. While described as "easy to get, easy to lose" compared to stricter regulations in states like California, this law signals a cautious state approach to driverless technology.

Looking ahead, Musk has expressed ambitious plans for rapid expansion, hinting at "thousands" of robotaxis on the road within months and potential expansion to other cities, including California. However, Tesla faces stiff competition from established players like Waymo, which already operates a significantly larger fleet of over 1,500 driverless vehicles across multiple major U.S. cities and plans further expansion. The futuristic Cybercab vehicle is not anticipated to enter production until 2026 at the earliest. The success of this robotaxi venture is increasingly vital to Tesla's long-term financial projections, as much of its valuation is now tied to its ability to deliver on autonomous driving and other innovative technologies.