Tesla launches first-ever robotaxi fleet in Austin, marking a decade of AI innovation

Tesla (TSLA.O) launched a small fleet of self-driving taxis in Austin, Texas, marking the first time its vehicles have carried paying passengers without a human driver behind the wheel.

CEO Elon Musk announced the "robotaxi launch" on his social media platform X, calling it the "culmination of a decade of hard work," while social media influencers shared videos of their inaugural rides, Caliber.Az reports, citing foreign media.

The trial involves about 10 Tesla vehicles operating in the South Congress neighborhood, each with a safety monitor in the front seat. The exact level of control these monitors hold remains unclear. Tesla is offering rides for a flat fee of $4.20, Musk confirmed.

Influencer and Tesla investor Sawyer Merritt documented his experience on X, showing himself ordering a robotaxi and taking a trip to a local bar and restaurant using Tesla’s robotaxi app.

Industry experts caution that Tesla faces significant hurdles in scaling up this service, with Carnegie Mellon University’s autonomous vehicle expert Philip Koopman describing the Austin trial as "the end of the beginning — not the beginning of the end." He noted it may take years or even decades before Tesla and competitors like Alphabet’s Waymo fully develop a robotaxi industry.

Tesla’s valuation heavily depends on its ability to deliver on Musk’s promises, particularly in robotaxis and humanoid robots, cementing its status as the world’s most valuable automaker.

As Tesla prepares for the rollout, Texas has introduced new autonomous vehicle legislation. Governor Greg Abbott recently signed a law requiring self-driving vehicle operators to obtain permits from the Texas Department of Motor Vehicles before operating without a human driver. The law, effective September 1, allows state authorities to revoke permits deemed dangerous and mandates firms provide emergency response information.

Bryant Walker Smith, a University of South Carolina law professor, commented, "California permits are hard to get, easy to lose. In Texas, the permit is easy to get and easy to lose."

Musk has pledged Tesla will be "super paranoid" about safety, restricting operations to limited areas and avoiding bad weather, complex intersections, and passengers under 18.

Tesla’s approach contrasts with industry standards, relying solely on cameras rather than lidar or radar, which Musk claims will be both safer and more cost-effective. However, regulatory scrutiny remains high following accidents involving rivals like GM’s Cruise.

By Vafa Guliyeva