Catenaa, Tuesday, June 24, 2025 – Tesla has launched its first commercial Robotaxi service in Austin, Texas, offering fully driverless rides to select users in what CEO Elon Musk called the “culmination of a decade of hard work.”
However, reports now say that regulators are questioning certain safety features of the taxi.
The pilot, which debuted over the weekend, features 10 to 20 modified Model Y vehicles operating without human drivers but with safety monitors onboard.
Each ride is priced at a flat $4.20 and limited to a geofenced zone covering Austin’s South Congress district.
Service hours run from 6 a.m. to midnight.
Access is currently restricted to handpicked influencers and content creators. Tesla said it developed the self-driving software and AI chips powering the Robotaxi entirely in-house.
The launch comes just days after Texas Gov. Greg Abbott signed legislation tightening autonomous vehicle regulations. The law, effective Sept. 1, will require AV operators to secure state permits, implement emergency protocols, and comply with Level 4 autonomy standards, which mandate full operational independence under specific conditions.
Tesla’s Robotaxi project now enters a competitive landscape, with Alphabet’s Waymo already partnering with Uber in Austin and Amazon-backed Zoox conducting trials. While Musk has pledged broader expansion to U.S. cities, no public rollout schedule has been released.
Tesla’s move marks a pivotal step in the race to commercialize driverless transport, but regulatory challenges and entrenched rivals may shape the next phase of deployment.
