Tesla Robotaxi is a ride-hailing service operated by Tesla, Inc. that utilizes its vehicles equipped with the Full Self-Driving (FSD) software. The service launched in a limited capacity in Austin, Texas, on June 22, 2025.
The service represents a key part of Tesla CEO Elon Musk's long-term strategy for the company, which envisions a future where Tesla owners can add their personal vehicles to a shared autonomous ride-hailing network.[1] The initial launch in Austin operates with a human "safety monitor" in the front passenger seat.[citation needed] The service's debut on June 22, 2025, was marked by significant media attention and scrutiny, with early riders documenting incidents such as driving on the wrong side of the street, phantom braking, dropping passengers off in intersections[citation needed] and traffic violations that drew the attention of federal regulators,[2] like the National Highway Traffic Safety Administration that is already investigating these issues.[3]
The Robotaxi network is eventually expected to work with all current Tesla vehicles, but is being focused on two new autonomous-only vehicles, Cybercab and Robovan, but would also support the Model 3 and Model Y, for owners who choose to allow their autonomous-capable vehicles to participate in the network.[4][5]Cybertruck, Model S and Model X will also be able to participate in the ridehailing network at a future time.[6]
History and concept
Tesla first mentioned a future car sharing service for its cars with autonomous control capability in 2016. Musk stated that the car could generate income for the owner while the owner pursued other activities.[7] By 2018, Tesla was more explicit and indicated that the service would compete directly with companies like Uber and Lyft, but with the substantial difference that the Robotaxi Network would be composed exclusively of autonomous electric vehicles.[8] In 2019, Musk said that costs for car owners who allow their vehicles to be part of the Tesla Network would be under 20 cents per mile, much less than the $2–3 per mile of traditional driver-operated ridesharing services.[6]
Tesla revealed on October 23, 2024, during its investor call, that a Tesla ridehailing app has been in internal testing since early 2024, exclusively with Tesla employees in California, using driver-supervised Model 3 and Model Y vehicles.[9][10]
The concept of a Tesla-operated autonomous ride-hailing network has been a central part of Elon Musk's public narrative for the company for nearly a decade.
October 2016: Musk announced that all new Tesla cars were being built with the necessary hardware for "full self-driving capability."[11] He outlined a vision where owners could allow their cars to work as robotaxis when they weren't using them, generating income.[12]
April 2019: At Tesla's "Autonomy Day," Musk predicted that Tesla would have one million robotaxis on the road by 2020. He said the vehicles would be "feature-complete on full self-driving" by the end of 2019 and would not require driver oversight by the second quarter of 2020.[1]
2020-2024: During this period, Tesla continued to develop its Full Self-Driving (FSD) software, releasing it as a beta feature to a growing number of customers.[13]
August 2024: Tesla unveiled a design for a purpose-built robotaxi, later dubbed the "Cybercab," a futuristic, two-seater vehicle with no steering wheel or pedals. Musk stated it would be cheaper to ride in a Cybercab than to take the bus.[14]
June 2025: The service is launched with human safety monitors using modified Tesla Model Y vehicles.[15]
Launch in Austin, Texas
Tesla began its robotaxi service on June 22, 2025, through an invite-only program for certain Tesla shareholders and social media influencers.[15]
Service details
Fleet: The initial service operates with a small fleet of 10 to 20 Tesla Model Y vehicles.[2]
Operational Area: The service is restricted to a geofenced area in South Austin.
Operating Hours: Rides are available from 6:00 AM to 12:00 AM Central Time.[16]
Safety Monitor: All vehicles currently operate with a Tesla employee in the front passenger seat who acts as a "safety monitor." The monitor is responsible for observing the vehicle's performance and can intervene if necessary, though they do not have access to traditional driving controls.[citation needed]
Cost: During the initial launch period, rides were offered at a flat promotional rate of $4.20.[17]
Public and media reception
The launch of the robotaxi service was met with a polarized reaction. Early riders posted numerous videos to social media praising the experience as "smooth" and "the future."[18]
However, mainstream media coverage and industry analysts were more critical. The focus was often on the numerous documented driving errors, the long-delayed launch, and the gap between Musk's promises of full autonomy and the reality of a service requiring human oversight. Many outlets discussed concerns surrounding public deployment of the technology.[2][19]
The U.S. National Highway Traffic Safety Administration began a probe on Telsa for repeated failures to report crashes involving advanced driver-assistance systems (ADAS), Autopilot and Full Self-Driving (FSD). Reports are required to be within the one to five established time frames for crashes, with Tesla reporting these incidents months after.[20]
The California Department of Motor Vehicles sued the company for false advertising to consumers by exaggerating the self-driving abilities of the vehicles. This can lead to an outright ban of the vehicles in California. The case is ongoing and was filed on July 2022.[21]
Documented incidents
During the first week of Tesla's Robotaxi service in Austin, several incidents involving traffic violations, unusual driving behavior, and performance concerns were reported and documented by early riders, with some captured on video.
Traffic law violations
Incident Type
Date
Location
Details
Wrong Lane Entry
June 22, 2025
Austin intersection
A robotaxi entered a left-turn-only lane, but instead of turning, it swerved right across double yellow lines into an unoccupied lane for oncoming traffic. The vehicle drove the wrong way for several seconds before correcting itself. The incident was documented by Tesla investor Rob Maurer.[19][22]
35 mph in a 30 mph zone (ride of Sawyer Merritt).[19]
39 mph in a 35 mph zone (ride of Herbert Ong).[19]
Operational safety incidents
Incident Type
Date
Location
Details
Steering Wheel Jerking
June 22, 2025
Austin intersection
The vehicle's steering wheel jerked violently left and right as it drove through an intersection. The vehicle's display showed the navigation path rapidly switching between two different routes, causing the car to drift over double yellow lines.[23][24]
Erratic Braking (Police Car)
June 22–23, 2025
Austin streets
A robotaxi was observed braking hard twice while passing stationary police cars with flashing lights. The police vehicles were on the side of the road and did not pose an obstruction.[2][25]
Pick-up and drop-off issues
Incident Type
Date
Location
Details
Handicapped Parking Violation
June 22–23, 2025
Austin parking lot
A robotaxi pulled into a designated handicapped parking space to pick up a passenger.[22]
Regulatory Response
Videos of the robotaxis' performance issues that circulated online caught the attention of U.S. federal regulators. On June 23, 2025, one day after the service launched, the National Highway Traffic Safety Administration (NHTSA) said, "NHTSA is aware of the referenced incidents and is in contact with the manufacturer to gather additional information."[26]
Competitive landscape
Tesla's Robotaxi service enters a market where competitors like Waymo (owned by Alphabet Inc.) have been operating for a longer period.
Key differences include:
Technology: Tesla uses a "vision-only" system that relies on eight cameras and artificial intelligence to navigate, eschewing the use of Lidar and radar, which are used by Waymo and most other competitors. Critics argue that Lidar provides a level of redundancy and accuracy that cameras alone cannot match, particularly in adverse weather or poor lighting.[27]
Safety Approach: Waymo operates a fully driverless service (no human in the vehicle) in multiple cities, including Phoenix, San Francisco, Los Angeles, and a portion of Austin.[citation needed] The presence of a safety monitor in Tesla's vehicles places its service at a lower level of autonomy (Level 2 or 3) compared to the Level 4 operations of Waymo.[citation needed]
Scale: At launch, Tesla's fleet consisted of fewer than two dozen vehicles in a limited area. By contrast, Waymo provides over 250,000 rides per week across its operational areas.[28]
Future outlook
Elon Musk has laid out an ambitious plan for the robotaxi service. He has stated that Tesla intends to launch the service in "a dozen cities" in the United States by the end of 2025, pending regulatory approvals.[29]
The company also plans to begin production of its purpose-built Cybercab in 2026, with significant volume production slated for 2027. The eventual goal is to remove the safety monitor and achieve true Level 4 or 5 autonomy, which would allow Tesla vehicle owners to add their cars to the ride-hailing network and generate revenue. However, a clear timeline for achieving this level of unsupervised operation has not been provided.[citation needed]
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