Tesla deployed a small fleet of self-driving taxis to pick up paying passengers in Austin, Texas, on Sunday, with CEO Elon Musk announcing the “launch of self-driving taxis” and social media influencers posting videos of their first rides.
The event marked the first time a Tesla vehicle carried paying passengers without a human driver, a business Musk considers critical to the electric carmaker’s financial future.
He posted on social media platform
The Tesla was spotted early Sunday in a neighborhood called South Congress with no one in the driver’s seat but only one person in the passenger seat. The automaker plans to conduct a small trial of about 10 vehicles and have front-seat passengers act as “safety monitors,” but it’s unclear how much control they will have over the vehicle.
In recent days, the automaker has extended invitations to a select group of influencers to conduct carefully monitored robotaxi trials in limited areas. Musk said on X that the rides will have a flat fee of $4.20 (roughly Rs. 360).
Sawyer Merritt, a Tesla investor and social media personality, posted a video on Sunday afternoon showing him using the Tesla robotaxi app to order, pick up and get a ride to Frazier’s Long and Low, a nearby bar and restaurant.
Even if Tesla’s small-scale rollout succeeds, it will still face significant challenges in delivering on Musk’s promise to rapidly expand in Austin and other cities, industry experts say.
Philip Koopman, a computer engineering professor at Carnegie Mellon University with expertise in self-driving car technology, said it could take years or decades for self-driving competitors such as Tesla and Alphabet’s Waymo to fully develop the robotaxi industry.
Tesla’s successful trial in Austin will be “the end of the beginning, not the beginning of the end,” he said.
Many industry analysts say much of Tesla’s current sky-high stock value rests on its ability to offer robotaxis and humanoid robots. Tesla is by far the most valuable automaker in the world.
As Tesla’s robotaxi launch date approaches, Texas lawmakers are beginning to craft rules for self-driving cars. Texas Gov. Greg Abbott, a Republican, signed legislation on Friday that would require a state license to operate self-driving cars.
The law, which takes effect on September 1, signals that government officials from both parties want the self-driving car industry to proceed cautiously.
Tesla did not respond to a request for comment. The governor’s office declined to comment.
Easy to get, easy to lose
The law softens the state’s previous anti-regulatory stance on autonomous vehicles. A 2017 Texas law explicitly prohibits cities from regulating self-driving cars.
The new law requires autonomous vehicle operators to obtain approval from the Texas Department of Motor Vehicles before operating on public streets without a human driver. It gives state authorities the power to revoke the licenses of operators they deem to be a danger to the public.
The law also requires companies to provide information about how first responders handle driverless vehicles in emergencies.
The law’s licensing requirements for “self-driving cars” are not onerous, but require companies to prove their vehicles can operate legally and safely.
It defines a self-driving car as having at least “Level 4” self-driving capabilities under recognized standards, meaning it can operate without a human driver under certain conditions. Level 5 autonomy is the highest level and means the car can drive itself anywhere under any conditions.
Compliance is still much easier than in some states, notably California, which requires vehicle testing data to be submitted under state oversight.
Bryant Walker Smith, a law professor at the University of South Carolina who focuses on autonomous driving, said it appears any company that meets the minimum application requirements will get a Texas license but could also lose it if something goes wrong.
“California licenses are difficult to obtain and easy to lose,” he said. “In Texas, licenses are easy to get and easy to lose.”
Musk’s safety promise
The launch of Tesla robotaxis comes after more than a decade of unfulfilled promises by Musk to deliver self-driving Teslas.
Musk has said Tesla will be “super paranoid” about the safety of its robotaxis in Austin, including operating in a limited area.
There will also be other restrictions on service in Austin. Tesla plans to avoid severe weather and difficult intersections, and will not carry anyone under 18 years old.
Commercializing self-driving cars is risky and expensive. General Motors’ Cruise shut down after serious accident. Regulators are keeping a close eye on Tesla and rivals Waymo and Amazon’s Zoox.
Tesla also went against the nascent industry’s standard practice of relying on multiple technologies to read the road using just cameras. Musk said it would be safe and much cheaper than lidar and radar systems added by competitors.
© Thomson Reuters 2025
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
