41 Sources
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Tesla launches robotaxi rides in Austin with big promises and unanswered questions | TechCrunch
Tesla has started giving rides in driverless Model Y SUVs in Austin, a decade after CEO Elon Musk began making -- and breaking -- myriad promises about his company's ability to launch such a service. The rollout will become the first big test of Musk's belief that it's possible to safely deploy fully autonomous vehicles using just cameras and end-to-end AI - an approach that differs from other players in the space like Waymo. On Sunday, numerous videos shared on social media as well as sources in the city, confirmed what Musk has been teasing for months: that the rides are finally happening, at a surely coincidental flat fee of $4.20 per ride. Tesla sent early-access invitations in the past week to vetted customers, who were able to download and use the new robotaxi app on Sunday to hail rides. It's unclear how many people have received this invitation. But posts on Musk's social media platform X show that many of them went to Tesla's loudest online supporters. The invitations, along with a new robotaxi information page published on Tesla's website on June 22, confirm the service will operate every day from 6:00 a.m. to 12:00 a.m but "may be limited or unavailable in the event of inclement weather." And, notably, a Tesla employee will be sitting in the right front passenger seat as a "safety monitor." The robotaxi information page also includes instructions on downloading the app, how to report a lost item, and general rules for riders. It still glosses over the kind of specifics that Waymo -- the Alphabet-owned AV company that operates commercial robotaxis in Phoenix, Los Angeles, San Francisco, and Austin -- has historically provided. The robotaxi service will be small to start, according to Musk. The initial fleet will be about 10 or so 2025 Model Y SUVs operating in a narrowly defined area of South Austin. That's in line with a first-hand account by Ed Niedermeyer, author of "Ludicrous, The Unvarnished Story of Tesla Motors," who is in Austin to monitor the robotaxi rollout. (Niedermeyer is a co-host of The Autonocast with TechCrunch editor Kirsten Korosec.) Neidermeyer found what appears to be a Tesla robotaxi depot -- a nondescript parking lot dotted with trees near Oltorf Street in South Austin. The day before the launch, he spotted several driverless Model Ys -- always with an employee behind the steering wheel -- entering and exiting the parking lot. Groups of other Tesla Model Y vehicles, most with manufacturer plates, were also parked there. This morning, he spotted the branded Tesla Model Y robotaxis, this time with the employee in the front passenger seat, leaving the holding area. He observed one of the branded robotaxis, which had not yet picked up a rider, suddenly hitting its brakes two separate times -- once in the middle of an intersection. It's unclear why the vehicle behaved that way. However, in a video, which TechCrunch has viewed, both instances occurred as the Tesla passed by police vehicles that were located in parking lots adjacent to the roadway. Leading up to the launch, Musk shared dribs and drabs about the Tesla robotaxi launch in a few interviews and posts on X. Even now, nearly all of the information about the robotaxi launch has been provided by the company's biggest supporters. In fact, Tesla has actively tried to suppress information about the robotaxi service. Tesla tried to block TechCrunch's public records request with the Texas Department of Transportation (TxDOT). The company has also tried to block the city of Austin from fulfilling a records request by Reuters, according to the news service. "Tesla seeks to be as transparent as possible, however, as explained further below, some of the requested information cannot be released because it is confidential information, trade secrets, and/or business information exchanged with the TxDOT in conjunction with conducting business with TxDOT," Taylor White, senior counsel on infrastructure for Tesla, wrote in a letter to the Texas Attorney General's office in April. One of the more interesting rollout strategies is the company's use of a human "safety monitor." It's unclear what role these safety monitors will play and how much, if any control, they will have. These employees are likely not meant to try and intervene if the software is about to do something wrong. But they may have access to some sort of kill switch that can stop the car if that does happen. Historically, autonomous vehicle companies like Waymo and former Cruise tested their respective self-driving technology by having a human safety operator behind the wheel and a second engineer in the front passenger seat. Eventually, that might be reduced to one person sitting in the passenger seat before removing them altogether. This practice was traditionally done during the testing phase -- not commercial operations. Tesla is not using the futuristic vehicles, dubbed Cybercabs, that were revealed on October 10, 2024. Instead, the 2025 Tesla Model Y vehicles are equipped with what Musk describes as a new, "unsupervised" version of Tesla's Full Self-Driving software. Tesla will not be using its in-cabin camera during rides by default. The company says it will only be used if a rider requests support or in the case of an emergency. It will use the camera after a ride ends to "confirm Robotaxi's readiness for its next trip." Tesla is encouraging early access riders to take photos and video of their experiences, although it says it "may suspend or terminate Robotaxi access" if riders violate its rules, including if they "disseminate content on a social media platform or similar medium depicting a violation of these Rules or misuse of the Robotaxi." (That includes riders agreeing not to smoke, vape, drink alcohol, do drugs, or use the robotaxi in connection with a crime.) Musk and other Tesla executives praised the milestone on X, with Ashok Elluswamy, the head of the company's self-driving team, posting a photo of the "Robotaxi launch party" from an undisclosed location. "Super congratulations to the @Tesla_AI software & chip design teams on a successful @Robotaxi launch!! Culmination of a decade of hard work," Musk wrote. But at least one rider on Sunday reported having an experience where Tesla's remote support team had to help in some way. It's not immediately clear what happened during that ride, but that same rider later said the ride was very smooth.
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Tesla's Robotaxi Service Hits the Road in Austin, With Riders Sharing Their Experiences
Tesla's robotaxi service kicked off in Austin, Texas, on Sunday, with the cars picking up paying passengers without a driver behind the wheel for the first time. "The @Tesla_AI robotaxi launch begins in Austin this afternoon with customers paying a $4.20 flat fee!" Tesla CEO Elon Musk posted to X on Sunday. Earlier this month, Musk had said Tesla's robotaxi service would "tentatively" launch June 22, and indeed it did. In another Sunday post on X, Musk applauded the Tesla software and chip design teams, calling the robotaxi service the "culmination of a decade of hard work" and noting that "Both the AI chip and software teams were built from scratch within Tesla." A select group of influencers got to take the new self-driving service for a spin aboard Tesla's Model Y vehicles, in a limited area of Austin. The robotaxi service will start by using Tesla's existing vehicles before the company eventually launches its purpose-built Cybercab vehicle, which has no steering wheel or pedals. Musk has said production on that vehicle would kick off "before 2027." Tesla reposted a handful of rider experiences in Austin, showing passengers climbing aboard and getting dropped off, and the vehicle navigating roads and speed bumps and dodging pedestrians. The videos show an employee sitting in the passenger seat to ensure everything's running smoothly, but no one in the driver's seat. In the leadup to the Austin launch, Tesla began testing its self-driving service with employees in the San Francisco Bay Area with a safety driver on board. In May, Musk posted on X that "for the past several days, Tesla has been testing self-driving Model Y cars (no one in driver's seat) on Austin public streets with no incidents." Texas is an appealing location to launch a self-driving service because of its minimal rules surrounding driverless vehicles. But on Friday, Governor Greg Abbott signed legislation requiring autonomous vehicle services to get a state permit before operating. The law goes into effect on Sept. 1.
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Tesla invites select few to Texas robotaxi trial with front seat safety monitors
June 20 (Reuters) - Tesla (TSLA.O), opens new tab has sent out invitations to a small group of people to join the limited test of its robotaxi service in Austin, Texas, which is tentatively set to start on Sunday, according to posts and email screenshots on social media. The invitations said a Tesla employee will accompany riders in the front passenger seat, the posts showed. A successful trial in Austin will be crucial for Tesla, as car buyers shun the company following its CEO Elon Musk's embrace of hard-right politics in the U.S. and worldwide. The company has shifted from building a cheaper EV platform to robotics and artificial intelligence. Much of the company's valuation rests on that bet. Musk has said he will focus on safety in the trial, with humans remotely monitoring the vehicles. He has said he expects to be able to scale the robotaxi quickly. Tesla plans to deploy around 10 Model Y SUVs that run on a version of Tesla's full self-driving driver assistance software, Musk has said. The start could be delayed and the service might be limited or unavailable in bad weather. Riders have to be aged 18 or above to take a ride. "Tesla is rolling out the Robotaxi service extremely cautiously, which is good. Baby steps," posted Omar Qazi, an X.com user with 635,100 followers who posts often about Tesla using the handle @WholeMarsBlog and received an invite. "Very much so," CEO Elon Musk responded. But commercializing autonomous vehicles is an expensive, risky process. Tesla and others such as Alphabet's Waymo (GOOGL.O), opens new tab and Amazon's Zoox (AMZN.O), opens new tab have faced federal investigations and recalls following collisions. Industry experts have questioned the efficacy of Tesla's self-driving technology that depends mostly on cameras and AI, without redundant sensors such as lidar and radar, claiming fog, heavy rain, and glaring sunlight can hamper safety. On Wednesday, a group of Democratic lawmakers from the Austin area called on the company to delay the rollout until September, when a new state law governing autonomous vehicles takes effect. Users who confirm their presence in Austin can download Tesla's Robotaxi app, which they use to call a vehicle. "Through this exclusive preview, you'll have the opportunity to provide valuable feedback on our Robotaxi service," one of the screenshots showed. Reuters could not immediately verify the authenticity of the screenshots. Reporting by Akash Sriram in Bengaluru and Abhirup Roy in San Francisco, Editing by Peter Henderson and Louise Heavens Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial IntelligenceADAS, AV & SafetyEV BatterySustainable & EV Supply Chain Akash Sriram Thomson Reuters Akash reports on technology companies in the United States, electric vehicle companies, and the space industry. His reporting usually appears in the Autos & Transportation and Technology sections. He has a postgraduate degree in Conflict, Development, and Security from the University of Leeds. Akash's interests include music, football (soccer), and Formula 1.
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Tesla shares soar after first robotaxi rides hit the road in Austin, Texas
June 23 (Reuters) - Tesla shares jumped 10% on Monday, lifted by the long-awaited launch of the company's robotaxi service that CEO Elon Musk has for years championed as a key driver of the electric vehicle maker's lofty valuation. The automaker deployed a small fleet of self-driving taxis in Austin, Texas, on Sunday, marking the first time its cars have carried paying passengers without human drivers. The rides were being offered for a flat fee of $4.20 in a limited zone. The trial's success is crucial for Tesla as Musk has pivoted the company to self-driving cars and robots, shelving plans for mass-market dominance in the EV space as Chinese competition heats up and demand slows for its aging line-up of models. "It was a comfortable, safe, and personalized experience," said Wedbush Securities analyst Dan Ives, who took multiple robotaxi rides on Sunday and has long been a Tesla bull. "There was a moment where we drove up a narrow road going up a hill with cars parked on both sides with oncoming traffic and people opening their car doors into the road and the robotaxi masterfully maneuvered with patience and safety." Many social-media influencers also posted videos of their first rides on X, showing the cars navigating busy city streets by slowing down and making room for incoming traffic. Still, the tightly controlled trial - with about 10 vehicles and front-seat riders acting as "safety monitors" - is just the first step in what could be a years-long process of scaling up the service, according to some industry experts. Tesla, as well as rivals including Google-backed Waymo, have faced federal investigations and recalls following collisions. Industry experts have questioned the efficacy of Tesla's self-driving technology that depends mostly on cameras and AI, without redundant sensors such as lidar and radar, claiming fog, heavy rain and glaring sunlight can hamper safety. The company will also have to navigate a new Texas law taking effect September 1 that requires a state permit for self-driving vehicles and reflects bipartisan calls for a cautious roll-out. Reporting by Aditya Soni in Bengaluru; Editing by Anil D'Silva Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial IntelligenceADAS, AV & SafetyEV BatterySustainable & EV Supply Chain
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Tesla robotaxi launch: Why getting from dozens to millions of self-driving cars won't be easy
June 24 (Reuters) - Tesla (TSLA.O), opens new tab finally has a robotaxi. Now comes the hard part. The electric-vehicle maker deployed its first-ever driverless cabs in Austin, Texas, on Sunday in a small-scale test of carefully monitored Model Y vehicles. Next, the company faces the steep challenge of executing on CEO Elon Musk's ambition to refine the software and upload it to millions of Teslas within a year or so. Such a rapid expansion will prove extremely difficult, about a dozen industry analysts and autonomous-vehicle technology experts told Reuters. These observers expressed a range of views about Tesla's prospects but all cautioned against assuming a light-speed robotaxi rollout. Some pointed to advantages Tesla might exploit to overtake rivals including Alphabet's (GOOGL.O), opens new tab Waymo and a host of Chinese auto and tech companies. Tesla has mass-manufacturing capacity, and it pioneered remote software updates it can use for self-driving upgrades. The automaker also does not use sensors such as radar and lidar like Waymo and most rivals; instead, it depends solely on cameras and artificial intelligence. "A rollout could be really quick. If the software works, Tesla robotaxi could drive any road in the world," said Seth Goldstein, a Morningstar senior equity analyst, while cautioning that Tesla is still "testing the product." In Austin, Tesla launched a choreographed experiment involving maybe a dozen cars, operating in limited geography, with safety monitors in the front passenger seat; remote "teleoperators"; plans to avoid bad weather; and hand-picked pro-Tesla influencers as passengers. For years, Musk has said Tesla would soon operate its own autonomous ride-hailing service and also turn any Tesla, new or used, into a cash-generating robotaxi for its customers. That will be "orders of magnitude" more difficult than testing in Austin, said Bryant Walker Smith, a University of South Carolina law professor focused on autonomous-driving regulation. "It's like announcing that, 'I'm going to Mars' and then, you know, going to Cleveland," Smith said. Musk has said Tesla will reach Mars, in that metaphor, quite quickly: "I predict that there will be millions of Teslas operating fully autonomously in the second half of next year," he said in April. Musk and Tesla did not respond to requests for comment. Tesla shares ended 8.2% higher at $348.68 on Monday on investor enthusiasm over the robotaxi launch. Given Tesla's AI-dependent approach, its challenge will be machine-training robotaxis to handle complex traffic "edge cases," said Philip Koopman, a Carnegie Mellon University computer-engineering professor and autonomous-technology expert. That could take many years. "Look, how long has it taken Waymo?" Koopman asked. "There's no reason to believe Tesla will be any faster." LONG SLOG Waymo's self-driving efforts date back to 2009, when Google started its self-driving car project. An egg-shaped prototype took its first ride on public streets in 2015, opens new tab - also in Austin. Waymo has taken since then to build a 1,500-robotaxi fleet in select cities. A Waymo spokesperson said it plans to add 2,000 more vehicles by the end of 2026. Some analysts believe Tesla can expand faster, in part because Waymo has helped pave the way by overcoming regulatory and technical challenges. "Waymo and other pioneers have helped to drive regulatory change and have made riders, pedestrians and other road users aware of autonomous vehicles," said Paul Miller, an analyst at market-research firm Forrester. Being a mass-manufacturer also helps Tesla, Miller said. Waymo buys Jaguar I-PACE SUVs and outfits them with more expensive sensors and technology than Tesla integrates into its vehicles. Waymo declined to comment on Tesla's robotaxi-expansion potential. The company's former CEO, John Krafcik, remains skeptical. The precautions Tesla employed in Austin reveal it does not have confidence its technology is safe at scale, Krafcik said. "And they shouldn't," he said. "It's not as safe as it needs to be, and falls well short of the robust approach and well-documented safety that Waymo has demonstrated." 'WRONG SIDE' OF THE ROAD Tesla's go-fast strategy could actually slow its progress and that of the autonomous-vehicle industry if it undermines public trust, some analysts said. Tesla has historically faced legal and regulatory trouble involving its Full Self-Driving (FSD) driver-assistance system, which is not fully autonomous. In one recent federal safety probe into Tesla, investigators are examining FSD's role in crashes - some fatal - involving rain or other inclement weather that interferes with the system's cameras. Before the Austin test, Musk posted on his social-media platform, X, that the robotaxis' technology would differ little from any Tesla, aside from a software update: "These are unmodified Tesla cars coming straight from the factory, meaning that every Tesla," he wrote, "is capable of unsupervised self-driving!" The automaker invited Tesla-friendly influencers to take its first robotaxi rides, and they generally cheered the experience. One social-media video posted by a robotaxi passenger, however, showed the vehicle proceeding through a four-lane intersection with a traffic light - and into the wrong lane, for about six seconds. No oncoming traffic was in the lane at the time. "Obviously we're on the wrong side of the double-yellow line here," said the passenger, Rob Maurer, in a video narration of the experience, opens new tab he posted on X, noting that he felt safe but that the car behind him honked at the "confusing maneuver." Maurer did not respond to requests for comment. Reuters verified the location of the video by matching the surrounding buildings, business and street signs to the intersection of West Riverside Drive and Barton Springs Road in Austin. Separately, a Reuters witness followed another Tesla robotaxi and measured its speed as it traveled at between 40 and 45 mph in a 35 mph zone on First Street, adjacent to the Texas School for the Deaf. A sign warned to watch for deaf pedestrians. Reporting by Rachael Levy in Washington, Norihiko Shirouzu in Austin, Texas, and Abhirup Roy in San Francisco; Editing by Brian Thevenot and Matthew Lewis Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial IntelligenceADAS, AV & SafetySustainable & EV Supply Chain Rachael Levy Thomson Reuters Rachael Levy is a Pulitzer Prize-winning enterprise correspondent. She has written about Wall Street, Elon Musk's companies, American health care and national security, among other topics. She earlier reported for the Wall Street Journal and other outlets. Phone: 202-967-6233 Contact her securely on Signal: levy.99 https://www.pulitzer.org/winners/staff-reuters
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'Baby steps' or 'impressive': Wall Street breaks down Tesla's robotaxi launch event
Wall Street closely watched Tesla 's robotaxi launch in Texas over the weekend. The electric vehicle maker invited a select group to ride the autonomous cars around Austin on Sunday. The event is considered a major milestone as some have pointed to driverless cars as the future of the business, which they in turn say makes the stock worthy of lofty valuations. Tesla shares jumped nearly 10% in Monday morning trading as investors reacted to the event. The stock has now surged around 37% in the second quarter, though shares have still fallen more than 12% in 2025. TSLA YTD mountain Tesla in 2025 To be sure, analyst outlooks on the event and what it means for the stock vary widely. While Wedbush's Dan Ives, who rode in the robotaxis over the weekend, said it "exceeded our expectations," Guggenheim's Ronald Jewsikow called the event "baby steps." But that's not necessarily surprising given how much Wall Street differs on the stock itself. Of the more than 50 analysts surveyed by LSEG, price targets for the company's shares range from between just $19.05 and $500. Here's what each of the firms that tracked Sunday's event thought about it and its impact to their investing thesis: Wedbush Ives recounted his experience taking two robotaxi rides in Austin. He found the cars were able to facilitate pickups well and navigate tough terrain. "Going into it, we expected to be impressed but walking away from it, all there is to say is that this is the future. We took two approximately 15 minute rides around Austin and the key takeaways are that it was a comfortable, safe, and personalized experience. The ride itself was completely smooth, and it was indistinguishable that the car was driverless as there was never a moment in the vehicle where we felt as if it did something irrational." Guggenheim Guggenheim's Jewsikow said the weekend experience wasn't huge, but it should satisfy investors in the near-term. He said the expansion rate for robotaxis will be what investors should watch. "Ultimately, the baby steps taken on Sunday in Austin were a good foundation, and shows the work the TSLA AI team has put into this launch, but what happens after the influencers leave will be far more important. By the end of this year, we believe the pace of expansion needs to be closer to a sprint to justify lofty robotaxi expectations embedded in TSLA valuation. While we can quibble about the merits of the event, it happened without a major issue, and that is likely good enough for the stock near-term, in our view. Service Area." TD Cowen TD Cowen analyst Itay Michaeli said Sunday's launch was a positive for the company. Additionally, Michaeli said he continues to be bullish on Tesla's autonomous vehicle story, though he said he wanted to avoid making broader conclusions too early. "Our initial take from observing rider feedback on Sunday is as follows: (a) The initial Austin operating area (ODD) was larger than we would've thought, although Tesla's initial ODD was smaller than Waymo's; (b) We were impressed by Tesla's UI, which appeared well-developed for an early stage rideshare deployment; (c) We were particularly impressed by the pickup/drop-off accuracy (i.e. navigating within a parking lot to a destination), which can be tricky for RoboTaxis particularly during the early launch phase; (d) No reported safety or major vehicle performance issues as we're aware. For a first day, pretty impressive." Barclays Barclays analyst Dan Levy said the robotaxi story should remain central for investors and the stock. However, he warned against traders getting ahead of themselves. "Zooming out, we believe the launch is a matter of perspective. Bulls will point to yesterday's event as the start of a new era for Tesla, one which bulls and believers have been awaiting for a long time. They see the tech working well with a clear path of scaling, and point to Tesla now generating revenue on driverless rides as a critical milestone. Bulls will point to yesterday's event as just the beginning of an exciting path of growth. We appreciate this view, and believe this further reinforces that Robotaxi/AV remains front and center for the stock ... with fundamentals seemingly pushed to the side for now (albeit we believe fundamentals don't matter until they matter). But we believe the much better question ahead is on the path of scaling, which we believe will be long, and we caution against overoptimism." UBS UBS' Joseph Spak said the robotaxi launch can help sustain interest in the stock despite initial service being small scale. While the analyst has a sell rating, he lifted his price target by $25 to $215 in a Monday note to clients. Still, that implies downside of more than 33% from Friday's close. "TSLA's initial robotaxi service may start small/limited including: 10-20 vehicles, geofenced, employees/invite only, safety monitors, tele-operations. But, this isn't different from how other autonomous ride hailing services started. We believe it's prudent for Tesla to begin operations this way before scaling. Despite limited initial operations, starting the service can help Tesla control the robotaxi narrative while also drawing more investor interest and focus to this opportunity, which could buoy the stock."
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Tesla stock rises as Musk touts 'successful' robotaxi Austin launch
The EV giant debuted autonomous rides in Austin, Texas, on Sunday, opening the service to a limited number of riders by invitation only. CEO Elon Musk said in a post on social media platform X that customers were charged a flat fee of $4.20. "Super congratulations to the @Tesla_AI software & chip design teams on a successful @Robotaxi launch!! Culmination of a decade of hard work. Both the AI chip and software teams were built from scratch within Tesla," he said in a post. One tester wrote on X that they did 11 "smooth as butter" rides with the service with "zero issues." Musk reposted numerous firsthand encounters with the services.
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Elon Musk's Trillion-Dollar Robotaxi Gamble Is Here
After years of hype, Tesla’s self-driving taxi service is finally live. The wait is finally over. After years of promises from its eccentric CEO, Tesla debuted its highly anticipated robotaxi service on June 22 in Austin, Texas, a launch that is central to the company’s entire future. This isn't just about a new feature; it's the cornerstone of Elon Musk's narrative that Tesla is not merely a car company but a world-changing AI and robotics powerhouse. As the automaker faces fierce competition from Chinese rivals like BYD, the success or failure of its autonomous vision could define its next chapter. “The @Tesla_AI robotaxi launch begins in Austin this afternoon with customers paying a $4.20 flat fee!†Musk announced on X, followed by posts congratulating his teams. The service kicked off with a small fleet of 10 to 20 Model Y SUVs navigating public roads. In a demo posted by Tesla, users within a specific "geofenced" area in south Austin can hail a ride through a dedicated app. The concept is simple: a taxi with no human driver. However, the reality of this "limited launch" is more cautious. The first rides were given to a select group of influencers and fans, and videos posted by the company show a "safety monitor" sitting in the passenger seat, a detail at odds with the fully autonomous dream. Musk himself admitted the company is being "super paranoid about safety," a sentiment that seems justified given a new Texas law requiring state permits for self-driving vehicles, set to take effect on September 1. At its core, the robotaxi is a vehicle powered by the most advanced version of Tesla's Full Self-Driving (FSD) system and a suite of eight cameras. But unlike competitors, Tesla claims its system doesn't need expensive, pre-mapped service areas. “It just works,†the company posted on X, promising future expansion to cities like San Francisco and Los Angeles. For Musk, this is the culmination of a long-standing promise. He envisions a future fleet, including a new "Cybercab" and "Robovan" with no steering wheels or pedals, that could boost Tesla's market value by an astonishing $5 trillion to $10 trillion. On June 20, Tesla was worth $1.04 trillion, the 11th most valuable company globally. By comparison, Microsoft ($3.54T), Nvidia ($3.50T), and Apple ($3.00T) top the leaderboard. Financial bulls share his optimism. "My view is the golden age of autonomous vehicles starting on Sunday in Austin for Tesla," said Wedbush analyst Dan Ives. "I believe it's a trillion dollar valuation opportunity for Tesla." Investor Cathie Wood's ARK Invest predicts robotaxis could account for 90% of Tesla's profits by 2029. If they are right, this weekend’s launch was existential. But there's a huge problem: Tesla may be late to the party. Waymo, Google's self-driving unit and the current market leader, already operates in Austin with a larger service area, as well as in Phoenix, San Francisco, and Los Angeles. Zoox, backed by Amazon, is live in Las Vegas and San Francisco and is testing in several other cities. The question isn't whether Tesla’s robotaxis will work. It’s whether they’ll work better and faster than everyone else’s. This fierce competition has led skeptics to dismiss Musk's grand projections. They argue that Tesla is unlikely to dominate a market where established players already have a significant head start. "What valuation will be attached to Tesla autonomy when it has to split the autonomous ride hailing market with others?" asks investor Gary Black, whose fund has sold all of its Tesla shares. This is the multi-trillion-dollar question. Is the Austin launch the dawn of Tesla's next great chapter, or is it a cautious, overhyped entry into a race it may have already lost?
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Elon Musk's Tesla rolls out first robotaxi fleet in Austin trial
After years of teasing and bold promises, Elon Musk has finally launched Tesla's robotaxi service. The first rides began on June 22 in Austin, Texas. The limited rollout marks a critical moment for the company and possibly its future. "This isn't just a new product launch. It's a big step in Elon Musk's vision to turn Tesla into more than a carmaker," many analysts suggest. The billionaire entrepreneur has long claimed Tesla will become a global AI and robotics powerhouse. This debut is meant to show that Tesla is serious about full autonomy.
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Tesla's Robotaxi service goes live in Austin. Price? $4.20 per ride.
That person is sitting in the passenger seat, not the driver's seat. Credit: Bloomberg / Getty Images The Tesla Robotaxi launch happened on June 22, with Tesla opening the service to the public in Austin, Texas, following a little over a month of beta testing conducted by Tesla employees. The service allows passengers to be ferried by autonomous Tesla vehicles (currently Tesla Model Y units). The above comes with many caveats, though. The service is only operating in a small part of South Austin, and it's only open to members of the "Early Access" group, making it a sort of closed beta program. Finally, while the cars drive autonomously, a Tesla employee must be sitting in the passenger seat, monitoring the ride. Tesla enthusiast Sawyer Merritt took several rides in a Tesla Robotaxi, describing the experience as "smooth and comfortable." Elsewhere, X user Zack called his journey "incredible" with "extremely smooth stops." It wouldn't be a Tesla launch without a weed joke. Thus, the price of all Tesla Robotaxi rides are currently a fixed $4.20, a nod to weed culture. Alphabet-owned Waymo is already operating in Austin (and other cities), and Amazon-owned Zoox is currently testing a driverless taxi service in the city. Their cars, however, are equipped with numerous additional sensors such as LiDAR (light detection and ranging); Tesla's service uses regular Model Ys, which rely only on cameras and Tesla's self-driving smarts. This Tweet is currently unavailable. It might be loading or has been removed. Musk has called the launch a "culmination of a decade of hard work," and pointed out that "both the AI chip and software teams were built from scratch within Tesla." The Tesla CEO has longed deemed the company's Robotaxi service one of the most important developments for Tesla's long-time prospects. The idea is that both Tesla and Tesla car owners will one day be able to send their cars to autonomously drive passengers around and earn them money. That future might still be far away, though. Tesla has been trying for years to bring its Full Self-Driving software to the level where its cars will be able to drive themselves in most situations, but hasn't been able to do so yet. The Robotaxi service does this, but within a very limited area. It'll be interesting to monitor how fast Tesla can expand its Robotaxi service to more passengers and other cities.
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Tesla Robotaxis Are Already Zooming Around Austin
A day ahead of the supposed launch of the driverless car service in the capital of Texas, social media users have spotted a number of Tesla Model Y EVs driving around the area just south of downtown -- with no human in the driver's seat. Sunday is said to be the official launch of Tesla's long-awaited Robotaxi service, which CEO Elon Musk has touted as the beginning of a new era for the company that's powered by artificial intelligence and autonomy. Private invitations to try the service went out this week to various Tesla-adjacent influencers and social media users, although the launch is said to be fairly tepid at first. Musk has said it will commence with about 10 to 12 cars at the outset with human safety operators riding in the passenger seat. Here are some of the videos and videos that appeared tonight on X, the social media network owned by Musk that's formerly known as Twitter: Several other videos appeared on TikTok tonight as well: More sightings are expected to follow in the coming days as Tesla continues to scale the service.
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Texas Tightens The Screws On Tesla's Robotaxi Rollout
Tesla's robotaxi service appears to have launched in Austin, offering invite-only rides to a small group of Tesla fans and influencers. But if the automaker wants to continue operating its driverless ride-hailing EVs, it may soon have to comply with new regulations that were signed into law by Texas Governor Greg Abbott on Thursday. The rules take effect on September 1. As reported first by the Motorhead Substack, the law requires operators of robotaxis to obtain a permit from the Texas Department of Motor Vehicles before deploying them without human controllers. It also gives the state the authority to revoke the permits if the robotaxis prove to be a danger to the public. And it requires them to submit information on how the companies will coordinate with the police and first responders in case of a crash or accident. The bill was signed into law after Democratic lawmakers in Texas wrote a letter to Tesla last week, urging the company to disclose how it plans to comply with safety regulations. Starting September 1, the new rules will require autonomous vehicle operators to prove they follow state traffic laws, use onboard recording devices, meet federal safety standards and ensure vehicles can safely stop if the self-driving system fails. The vehicles must also be registered, titled and insured in Texas. Tesla has said that the robotaxis will usher in a new era of growth for the company, potentially lifting its valuation into the trillions of dollars. It has also claimed that the robotaxis are safer than human drivers, something that AI and autonomous vehicle scientists are skeptical of. After a decade of delays and promises, some 10-20 self-driving Model Ys are now rolling in Austin with a safety driver on board driving in a geofenced area, with remote human controllers for backup. Tesla also issued a whole bunch of rules for the riders, saying that the service will only run between 6 a.m. and midnight and that it could be limited or unavailable in case of adverse weather. There's no indication yet if the service is open to the public -- so far, it only seems limited to Tesla's most ardent fans and influencers, who generally tend to be more forgiving of any errors the robotaxis might make.
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Tesla Robotaxi: How It Performed In Its First Weekend In Austin
It's unclear when it will be available for the general public. But here's what the first group of riders observed from the very first rides. Tesla's carefully choreographed Robotaxi rollout in Austin on Sunday gave us the first glimpse of what the driverless cab service looks like, thanks to dozens of videos posted by the fans and influencers who were invited to the event. Model Ys with "robotaxi" emblazoned on the front and the sides were seen picking up paying passengers -- for a flat $4.20 per ride -- for the first time ever in select parts of Austin, with nobody in the driver's seat. Each car had a Tesla employee monitoring from the passenger's seat. According to the several videos posted online by the riders, the rides appear to have gone mostly smoothly, but here are some key takeaways from the rollout. Passengers download the Robotaxi app and then use that to order a ride. According to Tesla investor Sawyer Meritt, Tesla owners' accounts on the cloud get auto-synced with rear screen of the Robotaxi. So their music, apps and even seat settings are ready when passengers hop in. The front windshield wipers appear to have a special camera-cleaning function, according to a video posted by FSD beta tester DirtyTesla. Instead of wiping the entire windshield, the wipers repeatedly scrub a small section right over the forward-facing camera, almost as if scrubbing a lens clean. It's a focused motion designed specifically to keep the camera clear, not the whole windshield. The Robotaxis rely on cameras and artificial intelligence to scan the environment around before executing active driving decisions, which is why keeping the cameras -- or the "eyes" of the vehicle -- clean is necessary. It wasn't all smooth sailing. Tesla investor Cole Grinde posted a video showing the robotaxi erratically swerving into the oncoming lane, which was thankfully empty, before correcting itself. The Model Y briefly flashed its turn signals and appeared to attempt a left turn, only to continue straight as the steering wheel spun left and right in a seemingly confused motion. In another instance, one rider caught it exceeding the posted speed limit and viewers online spotted a Tesla employee riding shotgun intervening in some situations with what appeared to be some kind of a button on the passenger's side door handle. The exact functionality of that button was unclear at the time of writing. In at least two other instances, it appears to have done what was expected out of it. It pulled over to let an ambulance pass and safely stopped in time when a pedestrian randomly dawdled onto the road out of nowhere. It's a "culmination of a decade of hard work," CEO Elon Musk said in a post on his social media platform X. Tesla's approach to product launches is different. While most automakers invite journalists to media events, Tesla has long leaned on its loyal fans and investors to spread the word, which why these social videos is all we have for now to get a clue of the Robotaxi's performance. The company did invite media for the Cybertruck debut, but typically, its hype engine runs on enthusiasm from Musk's fans on X. That said, the hurdles for the Robotaxi rollout are all but over. Texas, even though it has turned out to be a testbed for autonomous vehicle testing, has made its rules for AVs stricter. A new set of laws will be effective Sept. 1 onwards requiring robotaxi companies to provide additional information and assurances to the state government in the interest of public safety.
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Waymo Brings Robotaxis To Atlanta Days After Tesla's Mini Launch
Waymo's driverless cars are available in five U.S. cities, while Tesla's robotaxi pilot is in its very early stages. The Sunday launch of Tesla's robotaxi pilot was a milestone for a company that's been promising to deliver self-driving cars for years. For industry leader Waymo, bringing an autonomous ridehailing service to a new city is just another Tuesday. Waymo has started offering driverless rides in Atlanta, Georgia, via the Uber app, the two companies announced on Tuesday. The service kicks off with "dozens" of sensor-packed Jaguar I-Pace EVs, a Waymo spokesperson told InsideEVs. The news underscores just how far behind Tesla is in the race to dominate driverless technology, a market that could be worth hundreds of billions of dollars in the next decade. The promise of finally delivering self-driving Teslas is what has pushed the EV maker's market cap up over $1 trillion -- nearly quadruple Toyota's valuation. It's what Elon Musk has said will determine whether Tesla is worth trillions in the future, or next to nothing. Tesla is just getting started, and Waymo isn't standing still. The Alphabet-owned firm also recently introduced autonomous cars to the streets of Austin, Texas, through its partnership with Uber. It now operates around 100 vehicles there. In both Southern cities, Waymos are exclusively available on the Uber app. Waymo plans to expand the its fleet across both cities to "hundreds of vehicles" over the next few years. Tuesday's news means that Waymo is now offering paid driverless rides in five cities: the two serviced through its Uber partnership, plus San Francisco, Phoenix and Los Angeles. It has around 1,500 cars in its fleet and plans to more than double that through 2026. More cities are on the docket too, including Miami, Washington, D.C. and New York. Tesla, meanwhile, is just getting its footing in its hometown of Austin, Texas. The automaker started offering paid autonomous rides to people who aren't Tesla employees on Sunday. Its fleet consists of a small number of Model Ys operating in a specific area of Austin. So far, the service is invite-only, with hand-picked pro-Tesla influencers among the early crop of users. Each vehicle has a safety monitor sitting in the front passenger's seat, who is able to stop the car. While many videos from robotaxi riders showed relatively uneventful trips -- exactly what you want from a robotic taxi -- some users caught the Model Ys making mistakes. Clips show random braking events (a longtime Tesla issue known as "phantom braking"), cars going above the posted speed limit and cars swerving over double-yellow lines. Tesla argues that it has an edge here: technology that is cheaper and more easily scalable than Waymo's. It even poked fun at its rival with an X post on Sunday, saying that "Cars can drive themselves just fine without needing to wear a hat." (Waymos have bulky sensors on their roofs and corners, while Tesla's robotaxis are Model Y crossovers straight from the factory.) Tesla only uses cameras and artificial intelligence to teach its cars how to drive in the real world, while Waymo also uses more advanced LiDAR sensors, radars and high-definition maps of the cities it operates in. Many experts in the autonomous vehicle space believe Waymo's is the safer and more effective approach. So far, Waymo has the upper hand, with a large fleet of driverless vehicles deployed across several cities, 250,000 paid rides happening per week and rare incidents. Musk has said that Tesla will rapidly grow its driverless fleet and expand to more cities. The big question now is how quickly and safely that can happen -- and whether Waymo just continues to pull ahead.
[15]
Tesla expected to launch long-discussed robotaxi service
New York (AFP) - Tesla is expected to begin offering robotaxi service Sunday in Austin, an initial step that Elon Musk's backers believe could lead to the company's next growth wave. The launch -- which comes as Musk refocuses on his business ventures following a controversial stint in Donald Trump's administration -- will employ the Model Y sport utility vehicle rather than Tesla's much-touted Cybercab, which is still under development. The long-awaited launch follows the dramatic meltdown earlier this month in relations between Musk and Trump, which saw a cascade of bitter attacks from both men. Since then, Musk has publicly expressed regret for some of his statements, while his company's Texas operation has readied the Austin push -- part of a major drive on autonomous technology and artificial intelligence that Tesla bulls believe will yield huge profits. This group includes Wedbush analyst Daniel Ives, who said autonomous technology could be a catalyst for potentially $1 trillion in additional market value or more. "There are countless skeptics of the Tesla robotaxi vision with many bears thinking this day would never come," said Ives, who predicted that Trump's administration would clear roadblocks for Tesla and pivot from the recent "soap opera." "The golden era of autonomous for Tesla officially kicks off on Sunday in Austin," Ives said in a note Friday. Business-friendly Texas But the unveiling in the Texas state capital comes amid questions about how Tesla will try to overcome criticism of Musk's activities for Trump. Tesla saw profits plunge 71 percent in the first quarter following poor sales in several markets. In picking Austin for the debut of the autonomous vehicle (AV) service, Musk is opting for a US state known for its company-friendly approach to regulation. "Texas law allows for AV testing and operations on Texas roadways as long as they meet the same safety and insurance requirements as every other vehicle on the road," the Texas Department of Transportation told AFP. An Austin website listed six autonomous vehicle companies at various stages of operation: ADMT (Volkswagen), AVRide, Tesla, Zoox (Amazon), Motional (Hyundai) and Waymo (Alphabet/Google). But the Texas legislature this year enacted a new bill that requires prior authorization from the state's Department of Motor Vehicles before companies can operate on a public street without human drivers, a group of seven Democratic lawmakers said in a June 18 letter to Tesla. Citing the enhanced system, the lawmakers asked Tesla to delay testing until after the law takes effect September 1. If Tesla proceeds with the launch this weekend, "we request that you respond to this letter with detailed information demonstrating that Tesla will be compliant with the new law," the letter said. Starting slow Musk had initially planned the launch for June 12, before pushing back, saying he was being "super paranoid" about safety. "We want to deliberately take it slow," Musk said in a May 20 interview on CNBC, telling the network that Tesla would probably only operate 10 autonomous vehicles the first week. But that number will rise to perhaps 1,000 "within a few months," Musk told CNBC. "And then we will expand to other cities.... San Francisco, Los Angeles, San Antonio." The service will be offered from 6:00 am until midnight and will be available to "early access" users on an invitation-only basis in a geofenced area, Tesla owner Sawyer Merritt said Friday on Musk's X platform, adding that Tesla had given him permission to release the information. Musk last fall unveiled the Cybercab, which has no steering wheel or pedals. But production is not expected to begin on the vehicle until 2026. Tesla's robotaxi launch comes well after Waymo's offering of commercial robotaxi service, with more US cities gradually added. The US National Highway Traffic Safety Administration (NHTSA) in October 2024 opened a probe into Tesla's Full Self-Driving (FSD) software after receiving four reports of crashes. The NHTSA on May 8 asked Tesla for additional information on its technology in light of the Austin launch. But the NHTSA does not "pre-approve" new technologies, the agency told AFP. "Rather, manufacturers certify that each vehicle meets NHTSA's rigorous safety standards, and the agency investigates incidents involving potential safety defects," the NHTSA said.
[16]
Videos of robotaxi are rolling in and the Tesla fans riding it seem to like it
After plenty of delays (even as recently as this very morning), the first videos of Tesla's Robotaxi rides are coming in and the Tesla fans that have been invited as early access users seem to have positive reviews already. Tesla finally started operating a limited Robotaxi service today in Austin, Texas. The system is geofenced, time-limited, does not operate in inclement weather, and includes a "safety monitor" in the passenger seat and backup teleoperators, but it doesn't include a driver in the driver's seat, so it truly is a driverless taxi (well, unless you use Elon Musk's definition). The system is currently limited to the South end of Austin, as we can see in this short tour of the Robotaxi app. The Robotaxi app is currently invite-only, with invites sent primarily to about 20 Tesla fans, several of whom we heard make reference to a pre-briefing with Tesla going over the rules of the system. Those fans can bring +1s along for a ride, but only 2 passengers per ride allowed. To order a Robotaxi, you must download a separate app, other than the normal Tesla app, and install it (through Apple's TestFlight beta testing protocol). From there, as long as you are in the service area, you'll have a car sent to you to pick it up. If you pick a destination outside the service area, the app will try to drop you off near the edge of the service area and tell you how much of a walk you'll have to reach your actual destination. The area seems to be around 8 miles wide and 4 or so miles tall, so lets say somewhere around 30 square miles. That's smaller than the area that Waymo covers in Austin, and doesn't include the main downtown area North of the river, whereas Waymo does cover downtown (here's the Waymo service area). Tesla's director of Autopilot/AI, Ashok Elluswamy, posted a shot of the "war room" where Tesla is monitoring the launch. A screen shows that 112 rides and 499 miles of driving were completed at the time of posting, for an average ride of about 4 miles (which is about as far as you can go in the small service area) - along with a number "35" which is hard to read (if it's number of cars operating, then that's much higher than the anticipated 10 cars - one safety monitor was asked how many cars are operating, and declined to answer). The longest video we found is Chuck Cook's video on his first Robotaxi experience, posted on twitter like most of the others we saw here (wouldn't it be nice if they used something other than the worst video platform on the internet? oh well...). Cook attained some prominence for having a particularly difficult unprotected turn near his house, which he would routinely test new versions of FSD on and publish his results. His video, so far, seems to be the most complete one of a ride that I've seen. When your car arrives, you'll see a Tesla Model Y with nobody in the driver seat (but someone in the passenger seat, at least for now) and with pulsing exterior lights to signal that it is your vehicle. Unlike Waymo, Tesla doesn't have any unique signage outside the vehicle to distinguish one vehicle from another, but given that there are few cars operating at the moment, this shouldn't be much of an issue (Waymos can light up a sign with different colors and the initials of the person ordering it). When you get in, you'll find a lot of settings are carried over from your own Tesla ownership experience, as long as you've registered with your Tesla account within the app. Many riders pointed out that the music they were listening to in their cars showed up inside the Robotaxi when they got in. We imagine it might be able to, say, carry over your podcast progress or something of the sort, which would be a neat feature. The screens inside the vehicle operate in a familiar manner, but the rear screen in the Model Y has some Robotaxi-focused interface differences. For example, there's a "support" button which you can press to connect with remote help, just like in a Waymo (though the necessity of this with an actual, living person in the passenger seat seems lower). The support button seemed to have inconsistent response times, with some getting an immediate pickup, and some needing to wait for the better part of a minute. The "safety monitor" in the passenger seat has access to buttons telling the car to pull over or to stop in the lane, but doesn't have access to actual driver controls like steering wheel or pedals. Riders weren't able to operate the front screen to see if things like Netflix, etc., are operational while the car is in motion. The various Tesla fans who posted videos had plenty of experience in FSD-enabled vehicles, and the system seems to have similar capabilities but perhaps be on a different FSD build than public vehicles. The ride seems smooth, and perhaps smoother than you might have experienced on some FSD builds. I've had a Model Y try to launch me off of speed bumps and dips in the road before, but the Robotaxi handled this one well When dropping him off at Starbucks, Cook's car encountered a human driver stopped in the middle of the lot, and after some moments of indecision, decided to turn and back into a parking spot in order to let him out of the car. Quite advanced behavior, I would say, and a more confident parking job than I've personally encountered in a Waymo. When getting out of the car, you're presented with a button to open the trunk if you used it, and instructions on how to open the car's door. Tesla owners will know that first-time riders often have difficulty finding the button to release the door inside the vehicle (we mentioned this in our very first review of the Model 3), so those instructions are useful. Finally, at the end, you'll get a chance to rate your ride, and even leave a "tip"... but not really: The riders we saw are all Tesla fans and/or investors, which on the one hand makes them less interested in criticizing the company, but on the other hand means they are quite knowledgable about the current capabilities and limitations of Tesla's systems. The vibe we mostly got was positive, with the word "smooth" being bandied about readily. The day seems to have been relatively drama-free so far, minus the significant competition over the operating vehicles from every invited user repeatedly ordering taxis all day, and the annoyance from tele-support personnel answering the phone for people who didn't actually need help, but just saw a button they wanted to push. Well the day is finally here. After so many pushbacks, there are finally Teslas driving around on public roads with nobody in the driver's seat. So far, in the first few hours on a nice Austin day, shuttling a friendly audience around, there have been no problems we've seen yet. Some predicted immediate doom and gloom, but given the literal billions of miles that Tesla has under its belt with FSD, I would have been highly surprised to see things immediately go south. The stage was set for Tesla to get its launch, and its launch it got. Now comes the work of continuing to improve, of opening the system up to a true public, of seeing when these vehicles can actually operate unmonitored, with nobody at all inside the vehicle (or watching from abroad). And of seeing what the incident rate works out to over a sample of more than 499 miles, if Tesla will ever release that data (it says it would "suffer financial harm" if forced to). Launching in a state like this is one feat, but scaling is another. And then following through on the promise that you've been selling $15,000 software with for years - the promise that Tesla owners would have "appreciating assets." So far, Tesla's keeping that asset appreciation for itself. Tesla has long stated that it would be able to scale faster than others, and given the number of cars out there and data that it holds, that may end up being true. But Tesla's promises on full self driving have been proven wrong many times before, so there's a lot of "wait and see" left on that front. As of now, Tesla is still behind Waymo, by several years. But Waymo has also not been scaling particularly quickly, and certainly both are slower than a lot of techno-optimists would have liked. So we'll have to see which tortoise wins this race - but we welcome Tesla finally stepping up to the start line.
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Tesla's invite-only robotaxi pilot proceeds with safety drivers on board
The Pilot utilises Tesla's Y model vehicle not the CyberCab mooted last year. Image: Tesla Elon Musk's Tesla began quietly taking passengers in a very low-key launch of its robotaxi service in Austin Texas, complete with remote monitoring and safety driver in passenger seat. Despite an opportunity to pause when Austin lawmakers penned a letter requesting the pilot be delayed, Tesla proceeded with its long-anticipated robotaxi pilot on Sunday, albeit with invite-only rides for influencers, remote monitoring and safety drivers in the passenger seat. It is a long way from the "unsupervised, no one in the car" pilot Musk promised on an earnings call just last month. "The launch of Tesla's robotaxi service in Austin, Texas, earlier today was a low-key affair," said Paul Miller, Forrester's VP principal analyst. "As expected, only a handful of vehicles are available right now, they only operate in a small part of the city and there's a safety driver in the vehicle in case it encounters situations it cannot handle autonomously. "Competitors like Baidu, Pony.ai, and Waymo already carry paying passengers in a number of US or Chinese cities - without safety drivers. Waymo, for example, claims to have completed over 10 million paid rides in the US cities in which it operates." Musk knows that flagging Tesla sales and brand damage from his own political manoeuvres mean Tesla is in major need of a PR victory, so little surprise that he was out on X hailing the pilot as a "successful launch" and describing it as the culmination of a decade of hard work by his AI software and chip design team. "Both the AI chip and software teams were built from scratch within Tesla", he said. Existing self-driving taxis like Waymo use the L4 level of autonomy, with sophisticated sensors throughout the vehicle, whereas Tesla uses vision-only technology, so it is hoped that after a successful pilot, Tesla can quickly build its fleet via existing Tesla owners joining the robotaxi network. Existing self-driving taxis like Waymo use the L4 level of autonomy, with sophisticated sensors throughout the vehicle, whereas Tesla employs much cheaper vision-only technology. "Tesla is betting that its scale (the company builds almost 2 million cars each year), its data trove (the millions of Teslas on the road gather lots of data about roads and how to drive on them), and its cheaper tech stack (the company relies on cameras, while most competitors augment cameras' visual images with LiDAR and other more expensive sensors) will allow it to come from behind and pull ahead," said Miller. "If the company really has improved its full self-driving (FSD) technology as much as it claims, this could certainly be competitive. But if that FSD system isn't a big leap forward from the driver assistance tech that buyers of regular Teslas already use in some countries, it's going to need a lot of remote monitoring and control from an army of teleoperating safety drivers. This will add to Tesla's costs, and offer plenty of opportunities for embarrassing videos of Tesla robotaxis doing weird things." Meanwhile on Friday (June 20) Texas Governor Greg Abbott signed into law the expected autonomous vehicle regulations for the State, which require robotaxi operators to apply for a state permit from September 1, and it allows the state to revoke these permits if they deem there to be a public danger. These laws will apply to truly driverless cars, so it may be a while before we see Tesla drop the safety driver, and operate a truly driverless fleet. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.
[18]
Elon Musk's Tesla finally launches self-driving taxis after a decade of promises
Tesla deployed a small group of self-driving taxis picking up paying passengers on Sunday in Austin, Texas, with CEO Elon Musk announcing the "robotaxi launch" and social-media influencers posting videos of their first rides. The event marked the first time Tesla cars without human drivers have carried paying riders, a business that Musk sees as crucial to the electric car maker's financial future. He called the moment the "culmination of a decade of hard work" in a post on his social-media platform X and noted that "the AI chip and software teams were built from scratch within Tesla." Teslas were spotted early Sunday in a neighborhood called South Congress with no one in the driver's seat but one person in the passenger seat. The automaker planned a small trial with about 10 vehicles and front-seat riders acting as "safety monitors," though it remained unclear how much control they had over the vehicles.
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Tesla launches autonomous taxi service in Austin with Model Y vehicles - SiliconANGLE
Tesla launches autonomous taxi service in Austin with Model Y vehicles Shares of Tesla Inc. rose more than 8% today after the company launched a small-scale pilot of its autonomous taxi service in Austin. The company currently offers access to about 10 self-driving Model Y SUVs, according to TechCrunch. The Model Y (pictured) has a maximum range of more than 330 miles and up to seven seats depending on the configuration. Its onboard computer runs an autonomous driving platform called Fully Self-Driving. Tesla trained the artificial intelligence models that power Full Self-Driving using road measurements collected from customers' vehicles. The company says that the data, which is anonymized before it's used in AI development, covers "billions of miles" of roads. Tesla collected the information using the more than a half-dozen cameras that are included in each of its vehicles, which are also used by Full Self-Driving to navigate. Self-driving vehicles usually don't rely on cameras alone to collect road data. Alphabet Inc.'s Waymo LLC, for example, equips its autonomous taxis with a mix of cameras, radar units and lidar sensors. Lidar technology is used partly because it can collect data in situations when a vehicle's cameras don't work reliably, including in low-light conditions and during rain. Tesla's autonomous taxis will reportedly operate in a "narrowly defined area" of Austin between 6 a.m. and midnight. On launch, they're available only to a limited number of social media influencers. Tesla has launched a website that allows users to request access. Videos posted by early customers appear to show several incidents in which autonomous Model Y vehicles violated traffic laws. In two clips spotted by Bloomberg, Tesla's self-driving taxis appeared to exceed speed limits. In another video, a Model Y drove into a lane that it was not allowed to enter and then exited it by crossing a double-yellow line. Last year, the U.S. National Highway Traffic Safety Administration opened a probe into the company's autonomous driving software over reliability concerns. The investigation was prompted by several collisions that involved Tesla vehicles in which the software was enabled. Earlier this year, the NHTSA opened another probe into Tesla over its Actually Smart Summon feature. The technology, which is designed for use in environments such as parking lots, allows the company's vehicles to navigate automatically to a user-specified location. The NHTSA opened the probe in response to multiple reports of crashes involving Actually Smart Summon. The regulatory scrutiny of Tesla's AI software could complicate its autonomous taxi plans. The company plans to launch 1,000 taxis over the next few months, as well as expand the availability of its ride-hailing service to San Francisco and Los Angeles. Waymo already operates in both cities along with several other markets.
[20]
Tesla robotaxi launches in Austin with safety monitor
Tesla launched its robotaxi service in Austin, Texas, utilizing driverless Model Y SUVs, marking a significant step in the company's autonomous vehicle development, which relies on cameras and end-to-end artificial intelligence. This deployment represents a key test for Tesla's approach to fully autonomous vehicles, which diverges from other industry players like Waymo that incorporate additional sensor technologies beyond cameras. Reports on social media and local sources on Sunday confirmed the initiation of the service, with rides priced at a fixed rate of $4.20. Tesla had distributed early-access invitations to pre-screened customers during the previous week, enabling them to download and operate a new robotaxi application to request rides. The specific number of recipients for these invitations remains undisclosed, though social media activity on X, the platform owned by Elon Musk, indicated that many invitations were extended to prominent online supporters of Tesla. The invitations, in conjunction with a new robotaxi information page published on Tesla's website on June 22, specify that the service will operate daily from 6:00 a.m. to 12:00 a.m. The service may experience limitations or become unavailable during inclement weather conditions. A notable operational detail is the presence of a Tesla employee positioned in the front passenger seat, designated as a "safety monitor." The robotaxi information page further outlines procedures for downloading the application, reporting lost items, and general rules for riders. However, it lacks the detailed specificities typically provided by companies such as Waymo, an Alphabet-owned autonomous vehicle entity that operates commercial robotaxi services in Phoenix, Los Angeles, San Francisco, and Austin. Elon Musk indicated that the robotaxi service would commence on a small scale. The initial fleet comprises approximately 10 2025 Model Y SUVs, confined to a restricted operational zone within South Austin. This information aligns with observations made by Ed Niedermeyer, author of "Ludicrous, The Unvarnished Story of Tesla Motors," who was present in Austin to monitor the robotaxi rollout. Niedermeyer identified what appeared to be a Tesla robotaxi depot, described as an unassuming parking lot with trees situated near Oltorf Street in South Austin. The day prior to the launch, he observed several driverless Model Y vehicles, each with an employee situated behind the steering wheel, entering and exiting this parking lot. Additionally, groups of other Tesla Model Y vehicles, many equipped with manufacturer plates, were also parked at this location. Tesla accuses ex-staffer of theft On the morning of the launch, Niedermeyer observed the branded Tesla Model Y robotaxis departing from the holding area, with the employee now positioned in the front passenger seat. He documented an instance where one of the branded robotaxis, which had not yet picked up a passenger, exhibited abrupt braking on two separate occasions, one of which occurred within an intersection. The reason for this vehicle behavior was not immediately evident. However, a video reviewed by TechCrunch and subsequently posted on YouTube indicated that both braking incidents occurred as the Tesla passed police vehicles that were located in parking lots adjacent to the roadway. Prior to the launch, information regarding Tesla's robotaxi initiative was disseminated intermittently by Musk through interviews and posts on X. Even after the launch, most available information concerning the robotaxi service has originated from the company's prominent supporters. Tesla has actively sought to restrict the dissemination of information related to the service. Specifically, Tesla attempted to block a public records request filed by TechCrunch with the Texas Department of Transportation (TxDOT). The company also endeavored to prevent the city of Austin from fulfilling a records request submitted by Reuters, according to reports from the news agency. Taylor White, Senior Counsel on Infrastructure for Tesla, articulated the company's position in an April letter to the Texas Attorney General's office, stating, "Tesla seeks to be as transparent as possible, however, as explained further below, some of the requested information cannot be released because it is confidential information, trade secrets, and/or business information exchanged with the TxDOT in conjunction with conducting business with TxDOT." A notable aspect of the rollout strategy involves the deployment of human "safety monitors." The precise role and level of control possessed by these safety monitors remain undefined. It is not clear whether these employees are expected to intervene in situations where the software is poised to make an error. However, they may be equipped with a mechanism, potentially a kill switch, capable of stopping the vehicle in such occurrences. Historically, autonomous vehicle companies like Waymo and the former Cruise tested their self-driving technologies with a human safety operator situated behind the steering wheel and a second engineer in the front passenger seat. This operational model would typically transition to a single person in the passenger seat before eventually being removed entirely. This practice has traditionally been implemented during the testing phase, not during commercial operations. Tesla is not employing the futuristic vehicles, referred to as Cybercabs, which were unveiled on October 10, 2024. Instead, the 2025 Tesla Model Y vehicles are equipped with a newly integrated, "unsupervised" iteration of Tesla's Full Self-Driving software, as described by Musk. The in-cabin camera will not be active by default during rides. Tesla states that its use will be restricted to instances where a rider specifically requests support or in emergency situations. The camera will be utilized following the conclusion of a ride to "confirm Robotaxi's readiness for its next trip." Tesla encourages early access riders to capture photographs and videos of their experiences. However, the company explicitly states that it "may suspend or terminate Robotaxi access" if riders violate its established rules, including the dissemination of content on social media platforms or similar mediums that depict a violation of these rules or misuse of the Robotaxi. This includes prohibitions against smoking, vaping, consuming alcohol, using illicit drugs, or engaging in criminal activity within the robotaxi. Musk and other Tesla executives publicly acknowledged this milestone on X. Ashok Elluswamy, the head of Tesla's self-driving team, posted a photograph of a "Robotaxi launch party" from an undisclosed location. Musk stated, "Super congratulations to the @Tesla_AI software & chip design teams on a successful @Robotaxi launch!! Culmination of a decade of hard work." One rider on Sunday reported requiring assistance from Tesla's remote support team during a ride. The specifics of this incident were not immediately clear, though the same rider subsequently characterized the overall ride experience as "very smooth."
[21]
Tesla Invites Select Few to Texas Robotaxi Trial With Front Seat Safety Monitors
(Reuters) -Tesla has sent out invitations to a small group of people to join the limited test of its robotaxi service in Austin, Texas, which is tentatively set to start on Sunday, according to posts and email screenshots on social media. The invitations said a Tesla employee will accompany riders in the front passenger seat, the posts showed. A successful trial in Austin will be crucial for Tesla, as car buyers shun the company following its CEO Elon Musk's embrace of hard-right politics in the U.S. and worldwide. The company has shifted from building a cheaper EV platform to robotics and artificial intelligence. Much of the company's valuation rests on that bet. Musk has said he will focus on safety in the trial, with humans remotely monitoring the vehicles. He has said he expects to be able to scale the robotaxi quickly. Tesla plans to deploy around 10 Model Y SUVs that run on a version of Tesla's full self-driving driver assistance software, Musk has said. The start could be delayed and the service might be limited or unavailable in bad weather. Riders have to be aged 18 or above to take a ride. "Tesla is rolling out the Robotaxi service extremely cautiously, which is good. Baby steps," posted Omar Qazi, an X.com user with 635,100 followers who posts often about Tesla using the handle @WholeMarsBlog and received an invite. "Very much so," CEO Elon Musk responded. But commercializing autonomous vehicles is an expensive, risky process. Tesla and others such as Alphabet's Waymo and Amazon's Zoox have faced federal investigations and recalls following collisions. Industry experts have questioned the efficacy of Tesla's self-driving technology that depends mostly on cameras and AI, without redundant sensors such as lidar and radar, claiming fog, heavy rain, and glaring sunlight can hamper safety. On Wednesday, a group of Democratic lawmakers from the Austin area called on the company to delay the rollout until September, when a new state law governing autonomous vehicles takes effect. Users who confirm their presence in Austin can download Tesla's Robotaxi app, which they use to call a vehicle. "Through this exclusive preview, you'll have the opportunity to provide valuable feedback on our Robotaxi service," one of the screenshots showed. Reuters could not immediately verify the authenticity of the screenshots. (Reporting by Akash Sriram in Bengaluru and Abhirup Roy in San Francisco, Editing by Peter Henderson and Louise Heavens)
[22]
Analysis-Why Tesla's Robotaxi Launch Was the Easy Part
By Rachael Levy, Norihiko Shirouzu and Abhirup Roy (Reuters) -Tesla finally has a robotaxi. Now comes the hard part. The electric-vehicle maker deployed its first-ever driverless cabs in Austin, Texas, on Sunday in a small-scale test of carefully monitored Model Y vehicles. Next, the company faces the steep challenge of executing on CEO Elon Musk's ambition to refine the software and upload it to millions of Teslas within a year or so. Such a rapid expansion will prove extremely difficult, about a dozen industry analysts and autonomous-vehicle technology experts told Reuters. These observers expressed a range of views about Tesla's prospects but all cautioned against assuming a light-speed robotaxi rollout. Some pointed to advantages Tesla might exploit to overtake rivals including Alphabet's Waymo and a host of Chinese auto and tech companies. Tesla has mass-manufacturing capacity, and it pioneered remote software updates it can use for self-driving upgrades. The automaker also does not use sensors such as radar and lidar like Waymo and most rivals; instead, it depends solely on cameras and artificial intelligence. "A rollout could be really quick. If the software works, Tesla robotaxi could drive any road in the world," said Seth Goldstein, a Morningstar senior equity analyst, while cautioning that Tesla is still "testing the product." In Austin, Tesla launched a choreographed experiment involving maybe a dozen cars, operating in limited geography, with safety monitors in the front passenger seat; remote "teleoperators"; plans to avoid bad weather; and hand-picked pro-Tesla influencers as passengers. For years, Musk has said Tesla would soon operate its own autonomous ride-hailing service and also turn any Tesla, new or used, into a cash-generating robotaxi for its customers. That will be "orders of magnitude" more difficult than testing in Austin, said Bryant Walker Smith, a University of South Carolina law professor focused on autonomous-driving regulation. "It's like announcing that, 'I'm going to Mars' and then, you know, going to Cleveland," Smith said. Musk has said Tesla will reach Mars, in that metaphor, quite quickly: "I predict that there will be millions of Teslas operating fully autonomously in the second half of next year," he said in April. Musk and Tesla did not respond to requests for comment. Tesla shares ended 8.2% higher at $348.68 on Monday on investor enthusiasm over the robotaxi launch. Given Tesla's AI-dependent approach, its challenge will be machine-training robotaxis to handle complex traffic "edge cases," said Philip Koopman, a Carnegie Mellon University computer-engineering professor and autonomous-technology expert. That could take many years. "Look, how long has it taken Waymo?" Koopman asked. "There's no reason to believe Tesla will be any faster." LONG SLOG Waymo's self-driving efforts date back to 2009, when Google started its self-driving car project. An egg-shaped prototype took its first ride on public streets in 2015 - also in Austin. Waymo has taken since then to build a 1,500-robotaxi fleet in select cities. A Waymo spokesperson said it plans to add 2,000 more vehicles by the end of 2026. Some analysts believe Tesla can expand faster, in part because Waymo has helped pave the way by overcoming regulatory and technical challenges. "Waymo and other pioneers have helped to drive regulatory change and have made riders, pedestrians and other road users aware of autonomous vehicles," said Paul Miller, an analyst at market-research firm Forrester. Being a mass-manufacturer also helps Tesla, Miller said. Waymo buys Jaguar I-PACE SUVs and outfits them with more expensive sensors and technology than Tesla integrates into its vehicles. Waymo declined to comment on Tesla's robotaxi-expansion potential. The company's former CEO, John Krafcik, remains skeptical. The precautions Tesla employed in Austin reveal it does not have confidence its technology is safe at scale, Krafcik said. "And they shouldn't," he said. "It's not as safe as it needs to be, and falls well short of the robust approach and well-documented safety that Waymo has demonstrated." 'WRONG SIDE' OF THE ROAD Tesla's go-fast strategy could actually slow its progress and that of the autonomous-vehicle industry if it undermines public trust, some analysts said. Tesla has historically faced legal and regulatory trouble involving its Full Self-Driving (FSD) driver-assistance system, which is not fully autonomous. In one recent federal safety probe into Tesla, investigators are examining FSD's role in crashes - some fatal - involving rain or other inclement weather that interferes with the system's cameras. Before the Austin test, Musk posted on his social-media platform, X, that the robotaxis' technology would differ little from any Tesla, aside from a software update: "These are unmodified Tesla cars coming straight from the factory, meaning that every Tesla," he wrote, "is capable of unsupervised self-driving!" The automaker invited Tesla-friendly influencers to take its first robotaxi rides, and they generally cheered the experience. One social-media video posted by a robotaxi passenger, however, showed the vehicle proceeding through a four-lane intersection with a traffic light - and into the wrong lane, for about six seconds. No oncoming traffic was in the lane at the time. "Obviously we're on the wrong side of the double-yellow line here," said the passenger, Rob Maurer, in a video narration of the experience he posted on X, noting that he felt safe but that the car behind him honked at the "confusing maneuver." Maurer did not respond to requests for comment. Reuters verified the location of the video by matching the surrounding buildings, business and street signs to the intersection of West Riverside Drive and Barton Springs Road in Austin. Separately, a Reuters witness followed another Tesla robotaxi and measured its speed as it traveled at between 40 and 45 mph in a 35 mph zone on First Street, adjacent to the Texas School for the Deaf. A sign warned to watch for deaf pedestrians. (Reporting by Rachael Levy in Washington, Norihiko Shirouzu in Austin, Texas, and Abhirup Roy in San Francisco; Editing by Brian Thevenot and Matthew Lewis)
[23]
Tesla Robotaxis Are Now Driving Themselves in Austin: 'It Was Awesome'
Tesla officially launched its first robotaxis on Sunday to a small group of invited users, marking the beginning of what CEO Elon Musk envisions as a promising new business. The robotaxis are driverless 2025 Tesla Model Y cars outfitted with "unsupervised self-driving technology." For the launch, which took place in Tesla's hometown of Austin, per TechCrunch, a Tesla employee sat in the passenger seat as a safety precaution, but the passenger seat did not have a steering wheel or pedals. The first riders were a small group of retail investors and social media influencers selected by Tesla. One recipient, Herbert Ong, said in a video on X that Tesla had extended invites to 14 people. Ong, who conducts daily interviews with Tesla experts on X, noted from his experience in the robotaxi that the car was able to speed up and park well on its own. Passengers paid $4.20 for each ride. Other early invitees also took to social media to livestream their experiences. In a Sunday video viewed 1.6 million times on X, Chuck Cook, one of the invitees to try the Tesla robotaxi, said he was impressed when the car navigated a parking lot "confidently," taking pedestrians and other cars into account. The robotaxi asked for a tip at the end of the ride, then said it was "just kidding." Related: Elon Musk Announces the 'Cybercab' and Other Surprises at Tesla's 'We, Robot' Event. Here's What to Know. Another influencer, Sawyer Merritt, who has over 900,000 followers on X, said on the platform that his robotaxi experience was "awesome" and that it was "pretty wild" to see a Tesla with no one in the driver's seat. Meanwhile, Dongjin (DJ) Seo, a co-founder and vice president of implants at Musk-led Neuralink, wrote in a post on X on Sunday that the robotaxi ride he took was "an incredible display of real-world AI." The videos taken by early invitees show the robotaxis driving short distances, navigating turns and intersections, and parking successfully. Musk congratulated the Tesla AI software and chip design teams on Sunday, calling the robotaxi launch "successful" and noting that both the AI chip and software for self-driving cars were built from the ground up at Tesla. Musk said last year at Cyber Roundup 2024, Tesla's annual shareholder meeting, that Tesla robotaxis could quickly expand around the country. There are already millions of Teslas on the road, with nearly 700,000 Teslas sold in the U.S. in 2024 alone. A software update could allow existing Teslas to act as robotaxis and earn money for owners. "You can add or subtract your car to the fleet whenever you want," Musk said at the event. Related: Uber CEO Wants to Partner With Tesla on Robotaxis Because 'No One Wants to Compete Against Tesla or Elon' The only other carmaker offering fully autonomous paid rides in the U.S. is Alphabet's Waymo. Waymo's cars rely on sensors and software to drive on their own. The company has a head start on robotaxis compared to Tesla: Waymo provides more than 250,000 paid robotaxi trips per week to cities like Phoenix, San Francisco, and Austin. The company is planning to bring autonomous ride-hailing services to Atlanta, Miami, and Washington D.C. next year.A
[24]
Tesla Rolls out Robotaxis in Texas Test
Musk has said Tesla would be "super paranoid" about robotaxi safety Tesla deployed a small group of self-driving taxis picking up paying passengers on Sunday in Austin, Texas, with CEO Elon Musk announcing the "robotaxi launch" and social-media influencers posting videos of their first rides. The event marked the first time Tesla cars without human drivers have carried paying riders, a business that Musk sees as crucial to the electric car maker's financial future. He called the moment the "culmination of a decade of hard work" in a post on his social-media platform X and noted that "the AI chip and software teams were built from scratch within Tesla." Teslas were spotted early Sunday in a neighborhood called South Congress with no one in the driver's seat but one person in the passenger seat. The automaker planned a small trial with about 10 vehicles and front-seat riders acting as "safety monitors," though it remained unclear how much control they had over the vehicles. In recent days, the automaker sent invites to a select group of influencers for a carefully monitored robotaxi trial in a limited zone. The rides are being offered for a flat fee of $4.20 (roughly Rs. 360), Musk said on X. Tesla investor and social-media personality Sawyer Merritt posted videos on X Sunday afternoon showing him ordering, getting picked up and taking a ride to a nearby bar and restaurant, Frazier's Long and Low, using a Tesla robotaxi app. If Tesla succeeds with the small deployment, it still faces major challenges in delivering on Musk's promises to scale up quickly in Austin and other cities, industry experts say. It could take years or decades for Tesla and self-driving rivals, such as Alphabet's Waymo, to fully develop a robotaxi industry, said Philip Koopman, a Carnegie Mellon University computer-engineering professor with expertise in autonomous-vehicle technology. A successful Austin trial for Tesla, he said, would be "the end of the beginning - not the beginning of the end." Most of Tesla's sky-high stock value now rests on its ability to deliver robotaxis and humanoid robots, according to many industry analysts. Tesla is by far the world's most valuable automaker. As Tesla's robotaxi-rollout date approached, Texas lawmakers moved to enact autonomous-vehicle rules. Texas Governor Greg Abbott, a Republican, on Friday signed legislation requiring a state permit to operate self-driving vehicles. The law, which takes effect September 1, signals that state officials from both parties want the driverless-vehicle industry to proceed cautiously. Tesla did not respond to requests for comment. The governor's office declined to comment. Easy to Get, Easy to Lose The law softens the state's previous anti-regulation stance on autonomous vehicles. A 2017 Texas law specifically prohibited cities from regulating self-driving cars. The new law requires autonomous-vehicle operators to get 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 permits for operators they deem a public danger. The law also requires firms to provide information on how first responders can deal with their driverless vehicles in emergency situations. The law's permit requirements for an "automated motor vehicle" are not onerous but require firms to attest their vehicles can operate legally and safely. It defines an automated vehicle as having at least "Level 4" autonomous-driving capability under a recognized standard, meaning it can operate with no human driver under specified conditions. Level 5 autonomy is the top level and means a car can drive itself anywhere, under any conditions. Compliance remains far easier than in some states, notably California, which requires submission of vehicle-testing data under state oversight. Bryant Walker Smith, a University of South Carolina law professor who focuses on autonomous driving, said it appears any company that meets minimum application requirements will get a Texas permit - but could also lose it if problems arise. "California permits are hard to get, easy to lose," he said. "In Texas, the permit is easy to get and easy to lose." Musk's Safety Pledges The Tesla robotaxi rollout comes after more than a decade of Musk's unfulfilled promises to deliver self-driving Teslas. Musk has said Tesla would be "super paranoid" about robotaxi safety in Austin, including operating in limited areas. The service in Austin will have other restrictions as well. Tesla plans to avoid bad weather, difficult intersections, and will not carry anyone below age 18. Commercializing autonomous vehicles has been risky and expensive. GM's Cruise was shut down after a serious accident. Regulators are closely watching Tesla and its rivals, Waymo and Amazon's Zoox. Tesla is also bucking the young industry's standard practice of relying on multiple technologies to read the road, using only cameras. That, Musk says, will be safe and much less expensive than lidar and radar systems added by rivals. © Thomson Reuters 2025
[25]
Tesla's Robotaxi Launch Draws Wall Street Praise -- But Scaling Doubts Linger
Tesla shares soared after a successful robotaxi debut in Austin. It's been a bumpy ride for Tesla this year, but investors are finally feeling optimistic as the Elon Musk-led company begins rolling out its robotaxi service. Tesla shares rose 9 percent today (June 23), following what appeared to be a smooth launch of the first self-driving Teslas yesterday in Austin, Texas. The invite-only event allowed a handful of analysts and pro-Tesla social media influencers to test the carmaker's latest technology throughout a geofenced area in Austin. Tesla, which has seen its shares fall by more than 18 percent in the past six months, has positioned autonomous vehicles at the center of the company's future. Sign Up For Our Daily Newsletter Sign Up Thank you for signing up! By clicking submit, you agree to our <a href="http://observermedia.com/terms">terms of service</a> and acknowledge we may use your information to send you emails, product samples, and promotions on this website and other properties. You can opt out anytime. See all of our newsletters "Going into it, we expected to be impressed. Walking away from it, all there is to say is that this is the future," said Wedbush Securities' Dan Ives, who attended the launch, in a note to clients afterwards. "Super congratulations to the @Tesla_AI software and chip design teams on a successful @Robotaxi launch!!" said Musk in a post on X yesterday. Ashok Elluswamy, Tesla's vice president of A.I. software, shared an image of staffers watching the rollout at a robotaxi launch party. The launch wasn't completely unsupervised, though. Each ride included a safety monitor in the passenger seat. Tesla has also set a few ground rules: riders must be at least 18 years old, and the service currently operates daily from 6 a.m. to midnight. And, in a nod to Musk's trademark humor, each ride costs a flat fee of $4.20. For now, the robotaxi rides are limited to Tesla's Model Y vehicles, though production of the company's newly unveiled Cybercab, introduced last October, is slated to begin next year. Tesla's self-driving rides felt "comfortable, safe and personalized," said Ives, who noted that the vehicles successfully navigated dirt roads, traffic cones and chaotic conditions. Still, the launch wasn't without issues -- some robotaxis struggled with navigation or failed to pull over safely, as shown in videos shared by attendees. For now, the rollout will likely remain limited. UBS analyst Joseph Spak told clients the service may initially involve just 10 to 20 vehicles. He noted this is common practice for autonomous ride-hailing. Elon Musk has claimed that thousands of self-driving Teslas will be on the roads by 2026, but Wall Street remains skeptical about the company's ability to scale that quickly. Barclays analyst Dan Levy warned in a client note that the road ahead will likely be long and cautioned against "overoptimism." Another note by Guggenheim Partners analyst Ronald Jewsikow described the recent launch as more of a "baby step." To justify Tesla's lofty valuation, he said, the company's robotaxi rollout "needs to be closer to a sprint."
[26]
Tesla expected to launch long-discussed robotaxi service
Tesla is expected to begin offering robotaxi service Sunday in Austin, an initial step that Elon Musk's backers believe could lead to the company's next growth wave. Tesla's robotaxi launch comes well after Waymo's offering of commercial robotaxi service, with more US cities gradually added.Tesla is expected to begin offering robotaxi service Sunday in Austin, an initial step that Elon Musk's backers believe could lead to the company's next growth wave. The launch -- which comes as Musk refocuses on his business ventures following a controversial stint in Donald Trump's administration -- will employ the Model Y sport utility vehicle rather than Tesla's much-touted Cybercab, which is still under development. The long-awaited launch follows the dramatic meltdown earlier this month in relations between Musk and Trump, which saw a cascade of bitter attacks from both men. Since then, Musk has publicly expressed regret for some of his statements, while his company's Texas operation has readied the Austin push -- part of a major drive on autonomous technology and artificial intelligence that Tesla bulls believe will yield huge profits. This group includes Wedbush analyst Daniel Ives, who said autonomous technology could be a catalyst for potentially $1 trillion in additional market value or more. "There are countless skeptics of the Tesla robotaxi vision with many bears thinking this day would never come," said Ives, who predicted that Trump's administration would clear roadblocks for Tesla and pivot from the recent "soap opera." "The golden era of autonomous for Tesla officially kicks off on Sunday in Austin," Ives said in a note Friday. Business-friendly Texas But the unveiling in the Texas state capital comes amid questions about how Tesla will try to overcome criticism of Musk's activities for Trump. Tesla saw profits plunge 71 percent in the first quarter following poor sales in several markets. In picking Austin for the debut of the autonomous vehicle (AV) service, Musk is opting for a US state known for its company-friendly approach to regulation. "Texas law allows for AV testing and operations on Texas roadways as long as they meet the same safety and insurance requirements as every other vehicle on the road," the Texas Department of Transportation told AFP. An Austin website listed six autonomous vehicle companies at various stages of operation: ADMT (Volkswagen), AVRide, Tesla, Zoox (Amazon), Motional (Hyundai) and Waymo (Alphabet/Google). But the Texas legislature this year enacted a new bill that requires prior authorization from the state's Department of Motor Vehicles before companies can operate on a public street without human drivers, a group of seven Democratic lawmakers said in a June 18 letter to Tesla. Citing the enhanced system, the lawmakers asked Tesla to delay testing until after the law takes effect September 1. If Tesla proceeds with the launch this weekend, "we request that you respond to this letter with detailed information demonstrating that Tesla will be compliant with the new law," the letter said. Starting slow Musk had initially planned the launch for June 12, before pushing back, saying he was being "super paranoid" about safety. "We want to deliberately take it slow," Musk said in a May 20 interview on CNBC, telling the network that Tesla would probably only operate 10 autonomous vehicles the first week. But that number will rise to perhaps 1,000 "within a few months," Musk told CNBC. "And then we will expand to other cities.... San Francisco, Los Angeles, San Antonio." The service will be offered from 6:00 am until midnight and will be available to "early access" users on an invitation-only basis in a geofenced area, Tesla owner Sawyer Merritt said Friday on Musk's X platform, adding that Tesla had given him permission to release the information. Musk last fall unveiled the Cybercab, which has no steering wheel or pedals. But production is not expected to begin on the vehicle until 2026. Tesla's robotaxi launch comes well after Waymo's offering of commercial robotaxi service, with more US cities gradually added. The US National Highway Traffic Safety Administration (NHTSA) in October 2024 opened a probe into Tesla's Full Self-Driving (FSD) software after receiving four reports of crashes. The NHTSA on May 8 asked Tesla for additional information on its technology in light of the Austin launch. But the NHTSA does not "pre-approve" new technologies, the agency told AFP. "Rather, manufacturers certify that each vehicle meets NHTSA's rigorous safety standards, and the agency investigates incidents involving potential safety defects," the NHTSA said.
[27]
Tesla shares soar after first robotaxi rides hit the road in Austin, Texas
The automaker deployed a small fleet of self-driving taxis in Austin, Texas, on Sunday, marking the first time its cars have carried paying passengers without human drivers. The rides were being offered for a flat fee of $4.20 in a limited zone.Tesla shares jumped 10% on Monday, lifted by the long-awaited launch of the company's robotaxi service that CEO Elon Musk has for years championed as a key driver of the electric vehicle maker's lofty valuation. The automaker deployed a small fleet of self-driving taxis in Austin, Texas, on Sunday, marking the first time its cars have carried paying passengers without human drivers. The rides were being offered for a flat fee of $4.20 in a limited zone. The trial's success is crucial for Tesla as Musk has pivoted the company to self-driving cars and robots, shelving plans for mass-market dominance in the EV space as Chinese competition heats up and demand slows for its aging line-up of models. "It was a comfortable, safe, and personalized experience," said Wedbush Securities analyst Dan Ives, who took multiple robotaxi rides on Sunday and has long been a Tesla bull. "There was a moment where we drove up a narrow road going up a hill with cars parked on both sides with oncoming traffic and people opening their car doors into the road and the robotaxi masterfully maneuvered with patience and safety." Many social-media influencers also posted videos of their first rides on X, showing the cars navigating busy city streets by slowing down and making room for incoming traffic. Still, the tightly controlled trial - with about 10 vehicles and front-seat riders acting as "safety monitors" - is just the first step in what could be a years-long process of scaling up the service, according to some industry experts. Tesla, as well as rivals including Google-backed Waymo, have faced federal investigations and recalls following collisions. Industry experts have questioned the efficacy of Tesla's self-driving technology that depends mostly on cameras and AI, without redundant sensors such as lidar and radar, claiming fog, heavy rain and glaring sunlight can hamper safety. The company will also have to navigate a new Texas law taking effect September 1 that requires a state permit for self-driving vehicles and reflects bipartisan calls for a cautious roll-out.
[28]
Tesla's Robotaxis finally hit the streets -- USP, roadblocks and more
Tesla has launched its first robotaxi pilot in Austin with 10-20 self-driving Model Y vehicles, entering the autonomous ride-hailing race against Waymo. Unlike Waymo's sensor-heavy approach, Tesla uses cameras and FSD software, sparking safety concerns amid regulatory scrutiny and a letter from Texas lawmakers.Elon Musk's Tesla has entered the self-driving ride-hailing race against Google's Waymo, launching its first robotaxi pilot in Austin, Texas on Sunday. After a decade of development, Tesla has launched a pilot fleet of 10-20 fully autonomous Model Y robotaxis in Austin, offering rides at $4.20. People who were "invited for the ride" posted pics and flattering posts on social media. One user tweeted, "Robotaxi is here, and it's amazing. What a day. Can't wait for more." Another user said, "The ride was completely smooth, and it was indistinguishable that the car was driverless...." Musk called it the "culmination of a decade of hard work," he wrote in a post on X. "Both the AI chip and software teams were built from scratch within Tesla." This comes five years after rival service Waymo began commercial operations, completing 1,500 autonomous rides in San Francisco and Los Angeles, California and Phoenix, Arizona without a single reported incident. ET explains the latest launch and concerns surrounding autonomous vehicles. How is Tesla's Robotaxi different from Waymo? Waymo, a spinoff of Google, uses a sensor fusion comprising Lidar, radar, and camera. It offers Level 4 autonomous driverless rides. Tesla's robotaxi, on the other hand, is a Fully Self-Driving (FSD), unsupervised system that will not require a human behind the wheel. Tesla does not use radar and lidar sensors on its vehicles; instead, it relies on cameras. It is using a new, untested version of software. What are the concerns? However, Tesla's milestone moment comes amidst the concerns regarding the safety of these robotaxis. Texas Democrats, in a letter dated June 18th, urged Tesla to delay the launch. The letter read, "We are formally requesting that Tesla delay autonomous robotaxi operations until the new law takes effect on September 1, 2025. We believe this is in the best interest of both public safety and building public trust in Tesla's operations." The "Humans drive with brain and eyes, so should AI" philosophy has raised concerns regarding the safety of these robotaxis. Federal regulators have been raising concerns on the ground that it contributed to hundreds of avoidable crashes, including some fatal ones. Can India have driverless cars? In theory, yes, but not in practice. India does not have the required regulatory framework that can allow autonomous vehicles on the roads. This would include changes in the Motor Vehicles Act 1988, Insurance laws, among others. India does not have the road infrastructure for such autonomous vehicles, given the potholes, traffic congestion, and fewer signs on the roads. India is evolving in terms of technology; however, would sensory systems like lidar and radar be able to navigate through India's chaotic road environment is still a question. Moreover, from a business standpoint point the availability of cheap labour makes robotaxis less urgent here.
[29]
Tesla shares jump 10% after first robotaxi rides hit the road in Austin, Texas
The automaker deployed a small fleet of self-driving taxis in Austin, Texas, on Sunday, marking the first time its cars have carried paying passengers without human drivers. The rides were being offered for a flat fee of $4.20 in a limited zone.Tesla shares jumped 10% on Monday, lifted by the long-awaited launch of the company's robotaxi service that CEO Elon Musk has for years championed as a key driver of the electric vehicle maker's lofty valuation. The automaker deployed a small fleet of self-driving taxis in Austin, Texas, on Sunday, marking the first time its cars have carried paying passengers without human drivers. The rides were being offered for a flat fee of $4.20 in a limited zone. The trial's success is crucial for Tesla as Musk has pivoted the company to self-driving cars and robots, shelving plans for mass-market dominance in the EV space as Chinese competition heats up and demand slows for its aging line-up of models. "It was a comfortable, safe, and personalized experience," said Wedbush Securities analyst Dan Ives, who took multiple robotaxi rides on Sunday and has long been a Tesla bull. "There was a moment where we drove up a narrow road going up a hill with cars parked on both sides with oncoming traffic and people opening their car doors into the road and the robotaxi masterfully maneuvered with patience and safety." Many social-media influencers also posted videos of their first rides on X, showing the cars navigating busy city streets by slowing down and making room for incoming traffic. Still, the tightly controlled trial - with about 10 vehicles and front-seat riders acting as "safety monitors" - is just the first step in what could be a years-long process of scaling up the service, according to some industry experts. Tesla, as well as rivals including Google-backed Waymo, have faced federal investigations and recalls following collisions. Industry experts have questioned the efficacy of Tesla's self-driving technology that depends mostly on cameras and AI, without redundant sensors such as lidar and radar, claiming fog, heavy rain and glaring sunlight can hamper safety. The company will also have to navigate a new Texas law taking effect September 1 that requires a state permit for self-driving vehicles and reflects bipartisan calls for a cautious roll-out.
[30]
Why Tesla's robotaxi launch was the easy part
Tesla has launched its robotaxi service in Austin, Texas, initiating a carefully monitored test with Model Y vehicles. Experts caution that rapidly expanding this technology to millions of Teslas within a year will be challenging, citing the complexities of handling traffic edge cases and ensuring public trust.Tesla finally has a robotaxi. Now comes the hard part. The electric-vehicle maker deployed its first-ever driverless cabs in Austin, Texas, on Sunday in a small-scale test of carefully monitored Model Y vehicles. Next, the company faces the steep challenge of executing on CEO Elon Musk's ambition to refine the software and upload it to millions of Teslas within a year or so. Such a rapid expansion will prove extremely difficult, about a dozen industry analysts and autonomous-vehicle technology experts told Reuters. These observers expressed a range of views about Tesla's prospects but all cautioned against assuming a light-speed robotaxi rollout. Some pointed to advantages Tesla might exploit to overtake rivals including Alphabet's Waymo and a host of Chinese auto and tech companies. Tesla has mass-manufacturing capacity, and it pioneered remote software updates it can use for self-driving upgrades. The automaker also does not use sensors such as radar and lidar like Waymo and most rivals; instead, it depends solely on cameras and artificial intelligence. "A rollout could be really quick. If the software works, Tesla robotaxi could drive any road in the world," said Seth Goldstein, a Morningstar senior equity analyst, while cautioning that Tesla is still "testing the product." In Austin, Tesla launched a choreographed experiment involving maybe a dozen cars, operating in limited geography, with safety monitors in the front passenger seat; remote "teleoperators"; plans to avoid bad weather; and hand-picked pro-Tesla influencers as passengers. For years, Musk has said Tesla would soon operate its own autonomous ride-hailing service and also turn any Tesla, new or used, into a cash-generating robotaxi for its customers. That will be "orders of magnitude" more difficult than testing in Austin, said Bryant Walker Smith, a University of South Carolina law professor focused on autonomous-driving regulation. "It's like announcing that, 'I'm going to Mars' and then, you know, going to Cleveland," Smith said. Musk has said Tesla will reach Mars, in that metaphor, quite quickly: "I predict that there will be millions of Teslas operating fully autonomously in the second half of next year," he said in April. Musk and Tesla did not respond to requests for comment. Tesla shares ended 8.2% higher at $348.68 on Monday on investor enthusiasm over the robotaxi launch. Given Tesla's AI-dependent approach, its challenge will be machine-training robotaxis to handle complex traffic "edge cases," said Philip Koopman, a Carnegie Mellon University computer-engineering professor and autonomous-technology expert. That could take many years. "Look, how long has it taken Waymo?" Koopman asked. "There's no reason to believe Tesla will be any faster." LONG SLOG Waymo's self-driving efforts date back to 2009, when Google started its self-driving car project. An egg-shaped prototype took its first ride on public streets in 2015 - also in Austin. Waymo has taken since then to build a 1,500-robotaxi fleet in select cities. A Waymo spokesperson said it plans to add 2,000 more vehicles by the end of 2026. Some analysts believe Tesla can expand faster, in part because Waymo has helped pave the way by overcoming regulatory and technical challenges. "Waymo and other pioneers have helped to drive regulatory change and have made riders, pedestrians and other road users aware of autonomous vehicles," said Paul Miller, an analyst at market-research firm Forrester. Being a mass-manufacturer also helps Tesla, Miller said. Waymo buys Jaguar I-PACE SUVs and outfits them with more expensive sensors and technology than Tesla integrates into its vehicles. Waymo declined to comment on Tesla's robotaxi-expansion potential. The company's former CEO, John Krafcik, remains skeptical. The precautions Tesla employed in Austin reveal it does not have confidence its technology is safe at scale, Krafcik said. "And they shouldn't," he said. "It's not as safe as it needs to be, and falls well short of the robust approach and well-documented safety that Waymo has demonstrated." 'WRONG SIDE' OF THE ROAD Tesla's go-fast strategy could actually slow its progress and that of the autonomous-vehicle industry if it undermines public trust, some analysts said. Tesla has historically faced legal and regulatory trouble involving its Full Self-Driving (FSD) driver-assistance system, which is not fully autonomous. In one recent federal safety probe into Tesla, investigators are examining FSD's role in crashes - some fatal - involving rain or other inclement weather that interferes with the system's cameras. Before the Austin test, Musk posted on his social-media platform, X, that the robotaxis' technology would differ little from any Tesla, aside from a software update: "These are unmodified Tesla cars coming straight from the factory, meaning that every Tesla," he wrote, "is capable of unsupervised self-driving!" The automaker invited Tesla-friendly influencers to take its first robotaxi rides, and they generally cheered the experience. One social-media video posted by a robotaxi passenger, however, showed the vehicle proceeding through a four-lane intersection with a traffic light - and into the wrong lane, for about six seconds. No oncoming traffic was in the lane at the time. "Obviously we're on the wrong side of the double-yellow line here," said the passenger, Rob Maurer, in a video narration of the experience he posted on X, noting that he felt safe but that the car behind him honked at the "confusing maneuver." Maurer did not respond to requests for comment. Reuters verified the location of the video by matching the surrounding buildings, business and street signs to the intersection of West Riverside Drive and Barton Springs Road in Austin. Separately, a Reuters witness followed another Tesla robotaxi and measured its speed as it traveled at between 40 and 45 mph in a 35 mph zone on First Street, adjacent to the Texas School for the Deaf. A sign warned to watch for deaf pedestrians.
[31]
Tesla Robotaxis go rogue? Elon Musk's venture hits road bumps as BYD zooms past
Tesla's new Robotaxi pilot in Austin was meant to be a smooth first chapter in the company's self-driving revolution. But just days into its rollout, users and watchers have documented at least 11 strange and sometimes alarming incidents. From wrong-lane driving to mid-road stops and unexpected curb hops, Elon Musk's camera-only AI fleet is under close watch by regulators and residents alike. The rides are human-monitored, invite-only, and hailed via app -- for now, this taxi service is part test run, part tech experiment.Tesla launched its highly anticipated Robotaxi service on 22 June in Austin, Texas -- quietly, and for a chosen few. Only a handful of Tesla Model Y vehicles (between 10 and 20) were unleashed in a geofenced patch of South Austin. Zones include South Lamar, East Riverside, and the quirky Rainey Street Historic District. The service is invite-only, limited to Tesla enthusiasts and influencers who livestreamed their rides and posted footage online. Each ride costs a flat $4.20 and is hailed through an Uber-like app. The backseat passengers get a real-time map on a rear screen and can even access their Tesla account playlists. The cars log users out after each ride for privacy. It's clever. It's futuristic. And, at times, it's a little weird. No sooner had the Robotaxis hit the road than Redditors began compiling clips of their misadventures. So far, at least 11 videos have surfaced showing Tesla's AI making questionable decisions. The footage includes: One early tester, Rob Maurer, saw his ride cross a double yellow line into the opposite lane before course-correcting. "It signalled left, then it changed its mind. The car behind honked, but luckily, there was no oncoming traffic," he said in his video. Other clips show the vehicles bumping over kerbs or hesitating at intersections. At least one user reported belongings being tossed forward during a sudden brake. The videos are real. The reactions, mixed. Unlike its rivals, Tesla's system doesn't use LiDAR or radar. It relies only on cameras and Elon Musk's long-touted Full Self-Driving (FSD) software. The version used in the Robotaxi doesn't need a human behind the wheel, but for now, each vehicle includes a human "safety monitor" in the front seat. In one video, a monitor was seen pressing the emergency stop button when a delivery truck began reversing toward the Robotaxi. In another, the AI successfully pulled over to let an ambulance pass, outperforming even a human-driven Cybertruck nearby. But camera-only navigation comes with trade-offs. Sunlight glare reportedly caused a car to brake unexpectedly. Critics argue this reveals the limits of Tesla's approach. As one Redditor put it: "If the sun can confuse it, what happens in fog or at night?" The National Highway Traffic Safety Administration (NHTSA) confirmed it is "aware of the referenced incidents and is in contact with the manufacturer." A spokesperson added, "NHTSA does not pre-approve new technologies or vehicle systems -- rather, manufacturers certify that each vehicle meets standards, and we investigate incidents involving safety defects." The City of Austin said it was "actively collaborating with Tesla" after reports of erratic stops and awkward pickups circulated online. Local police are also being briefed to safely interact with the cars. University of Texas professor Kara Kockelman didn't mince words, "Dropping off people in the middle of a six-lane road or edge of a busy intersection when traffic is going in the opposite direction is pretty dangerous," she told Business Insider. Philip Koopman, an autonomous tech expert at Carnegie Mellon, was surprised by the sheer volume of footage. "I was not expecting as many videos of problematic driving on the very first day," he said. Still, not everyone's panicking. Alain Kornhauser of Princeton University took a more optimistic view: "So far so good. It handled the situations very well and likely better than even good drivers." On the day of the Robotaxi pilot launch, Tesla shares briefly surged by 11%, closing up 8%. But the rally fizzled out the next day. The enthusiasm may have reflected hope in the company's long-term vision, but investors appear cautious about the realities of the rollout. Meanwhile, Tesla's sales in Europe continue to slide. Despite a new Model Y and a dedicated Gigafactory in Germany, May saw a significant year-over-year drop in sales. If June numbers don't rebound, Tesla risks losing ground in one of its most strategic markets. While the Robotaxi was only released in Austin, Texas, these are the sales figures from Europe. In China, BYD is outperforming nearly all rivals. Despite price wars, it has retained healthy profit margins and now controls over half the country's EV market. In May alone, plug-in vehicles made up 53% of all new vehicle sales in China -- with battery electric vehicles accounting for 31%. Back in the U.S., Tesla faces stiff competition from Waymo, whose Robotaxis in Austin operate in twice the coverage area and do so without human monitors onboard. Waymo recently expanded to Atlanta via Uber, while Tesla's own rollout remains cautious and limited. Tesla says this is still an early-access programme, not a full public launch. It avoids tricky intersections, bad weather, and kids under 18. No serious crashes have occurred yet. And many testers described the rides as smooth, even impressive. One YouTuber, Bearded Tesla Guy, showed how the vehicle navigated a packed grocery car park -- first hesitating, then asserting itself and finding a way out. But the footage also reveals the service's fragility. A ride that stops in an active intersection? A vehicle picking up in a handicapped spot? These are not errors that Tesla wants going viral. And that's the catch. This is a test conducted in full public view, where every minor glitch is filmed, analysed, and reposted. It's a bold move. And a risky one. Elon Musk has promised that this pilot will lead to a national rollout -- eventually "millions" of Teslas operating as fully autonomous taxis by mid-2026. A new model, the Cybercab, will ditch the steering wheel and pedals entirely. But so far, all that's visible is a handful of Model Ys trundling through a few square miles of South Austin. That's the tension. Tesla wants to race toward the future. But every clipped kerb, botched stop and swerved lane is a reminder: autonomy is hard. The world is messy. And even the smartest robots still have a lot to learn.
[32]
Tesla Launches Robotaxi In Austin: Elon Musk Calls It A 'Culmination Of A Decade Of Hard Work' - Tesla (NASDAQ:TSLA)
Tesla Inc. TSLA has officially launched the Robotaxi in Austin as the self-driving taxi race in the U.S. shifts into gear. What Happened: The rollout, which was a small-scale event with over 10 Tesla Model Y Robotaxis, took place in Austin's South Congress neighborhood on Sunday. The event was invite-only and Tesla created a dedicated app for the riders, who were mostly social media influencers, to book rides similar to other ride-hailing apps like Uber Technologies Inc. UBER. Tesla also had safety monitors seated in the front seat during the rides. The safety monitors were Tesla employees overseeing the operations, though there were no confirmations about how much control they had, given that the Robotaxi was operating on Unsupervised FSD. The EV giant's CEO, Elon Musk, took to social media to hail the launch on the social media platform X on Sunday. Musk called the launch a "culmination of a decade of hard work" in his post and shared that both the AI Chip, as well as the software team responsible for the Robotaxi, "were built from scratch within Tesla." Why It Matters: The launch comes in as Tesla has been teasing the company's arrival in the self-driving taxis sector to take on players like Alphabet Inc.'s GOOGL GOOG Waymo as well as Amazon.com Inc.'s AMZN Zoox. While Waymo had announced its expansion into more parts of California and the company is also conducting trials in other parts of the U.S., Zoox set up a second production facility in California, which could help the company scale its Robotaxi operations. Tesla, meanwhile, has been under the scrutiny of safety regulators in the U.S. as the NHTSA has been reviewing the company's responses to the questions posed by the agency over FSD's performance in poor weather conditions. Musk had previously also stated that Tesla is working closely with the billionaire's AI venture, xAI, to collaborate and develop robotics as well as autonomous driving. Tesla scores well on Momentum, Quality and Growth metrics, but offers poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today! Check out more of Benzinga's Future Of Mobility coverage by following this link. Read Next: Elon Musk's Tesla To Expand Model Y Lineup With New 6-Seater Version: Report Photo courtesy: Ken Wolter / Shutterstock.com TSLATesla Inc$322.700.20%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum83.28Growth91.40Quality81.00Value9.62Price TrendShortMediumLongOverviewAMZNAmazon.com Inc$210.18-1.10%GOOGAlphabet Inc$167.88-3.51%GOOGLAlphabet Inc$166.66-3.84%UBERUber Technologies Inc$83.850.49%Market News and Data brought to you by Benzinga APIs
[33]
Why Tesla Stock Is Skyrocketing Today | The Motley Fool
Tesla launched its robotaxi service in Austin, Texas this weekend after delaying the launch earlier this month. Tesla officially debuted its Robotaxi service in Austin on Sunday. Riders -- mainly social media influencers selected by the company -- were able to hail Model Y vehicles without a driver through an app that works much like Uber's. Each trip was priced at $4.20. While the vehicles lacked a human driver, they did have a safety monitor in the front passenger seat with a "kill switch" that could react if the vehicle behaved dangerously. Remote operators also were available in case the robotaxi found itself unable to navigate a situation. No incidents were reported, however. CEO Elon Musk celebrated the milestone on X, calling it the "culmination of a decade of hard work" and noting that Tesla designed both the artificial intelligence (AI) chip and software in-house. Musk promised there would be more to come but hasn't revealed specifics of when the general public will be allowed to summon a robotaxi or when they'll operate without a safety monitor. A robotaxi fleet could be a game changer for the company, but despite this weekend's successful launch, investors should know there's a very long way to go. The launch was highly controlled and limited to a small area of Austin that has been thoroughly mapped and tested. Its Alphabet-backed rival, Waymo, has been operating in several cities in uncontrolled environments for quite some time. I have serious doubts Tesla can accomplish the same in a reasonable time frame.
[34]
Tesla shares pop 10% as Elon Musk touts 'successful' Robotaxi test...
Shares of Elon Musk's Tesla popped 10% on Monday following the debut of its self-driving "Robotaxi" flee -- the first major test of technology that the billionaire has promised will transform the company's business. Tesla shares were trading at about $354 per share as a handpicked group of influencers who participated in the trial run in Austin, Texas, on Sunday uploaded positive reviews on X and other social media platforms. Wedbush analyst Dan Ives, a Tesla bull, said he participated in a test drive that "exceeded our expectations" for the fledging technology. Ives maintained his "outperform" rating for Tesla's stock and a $500 price target. "Going into it, we expected to be impressed but walking away from it, all there is to say is that this is the future," Ives said in a note to clients. Ives said he took two approximately 15-minute rides around Austin. "The ride itself was completely smooth, and it was indistinguishable that the car was driverless as there was never a moment in the vehicle where we felt as if it did something irrational," Ives said. The Tesla safety monitors "were not permitted to comment on anything nor did they influence the car in any way," he added. The electric car maker began offering driverless rides by invitation only on Sunday, with riders charged a $4.20 flat fee -- a cheeky not to marijuana use. About 10 driverless Tesla Model Y SUVs were reportedly on the road, with company "safety monitors" on board in the front seat to oversee the trips. Bearded Tesla Guy, a social media influencer, compared the experience to "basically Uber." Farzad Mesbahi, a former Tesla employee-turned influencer, said his rides were "very smooth and comfortable." "Now Tesla needs to scale this service safely," Mesbahi said on X. "As long as the system performance holds, they should be able to cover the US with Robotaxis virtually overnight." Robotaxi is set to directly compete with Google-owned Waymo and Amazon-backed Zoox in the autonomous vehicle market. Musk had earlier shared "super congratulations to the @Tesla_AI software & chip design teams on a successful @Robotaxi launch!!" "Culmination of a decade of hard work. Both the AI chip and software teams were built from scratch within Tesla," Musk wrote on X. Invitations circulated by Tesla said the initial Robotaxi service would be available from 6:00 AM to 12:00 AM local time and limited to a geofenced area, meaning anything outside the pre-set boundaries would be off-limits. Tesla also said Robotaxi service would be limited or unavailable in the event of bad weather. Musk has long touted the potential of Tesla's "Full Self Driving" technology, though federal regulators and other critics have repeatedly raised safety concerns. He has suggested that autonomous driving technology can add $5 trillion to $10 trillion to Tesla's market capitalization by transforming its vehicles into an instant productive fleet. The billionaire had said the Robotaxi rollout was limited because Tesla was "being super paranoid about safety." The debut occurred at a critical time for Tesla, whose shares have been under pressure since Musk embarked on his controversial work with President Trump and the Department of Government Efficiency. Musk and Trump had a very public falling-out earlier this month, though the two have since appeared to mend fences.
[35]
Tesla rolls out robotaxis in Texas test
AUSTIN (Reuters) -Tesla deployed a small group of self-driving taxis picking up paying passengers on Sunday in Austin, Texas, with CEO Elon Musk announcing the "robotaxi launch" and social-media influencers posting videos of their first rides. Musk called the moment the "culmination of a decade of hard work" in a post on his social-media platform X and noted that "the AI chip and software teams were built from scratch within Tesla." Teslas were spotted early Sunday in a neighborhood called South Congress with no one in the driver's seat but one person in the passenger seat. The automaker planned a small trial with about 10 vehicles and front-seat riders acting as "safety monitors," though it remained unclear how much control they had over the vehicles. In recent days, the automaker sent invites to a select group of influencers for a carefully monitored robotaxi trial in a limited zone. The rides are being offered for a flat fee of $4.20, Musk said on X. Tesla investor and social-media personality Sawyer Merritt posted videos on X Sunday afternoon showing him ordering, getting picked up and taking a ride to a nearby bar and restaurant, Frazier's Long and Low, using a Tesla robotaxi app. If Tesla succeeds with the small deployment, it still faces major challenges in delivering on Musk's promises to scale up quickly in Austin and other cities, industry experts say. It could take years or decades for Tesla and self-driving rivals, such as Alphabet's Waymo, to fully develop a robotaxi industry, said Philip Koopman, a Carnegie Mellon University computer-engineering professor with expertise in autonomous-vehicle technology. A successful Austin trial for Tesla, he said, would be "the end of the beginning - not the beginning of the end." Most of Tesla's sky-high stock value now rests on its ability to deliver robotaxis and humanoid robots, according to many industry analysts. Tesla is by far the world's most valuable automaker. As Tesla's robotaxi-rollout date approached, Texas lawmakers moved to enact autonomous-vehicle rules. Texas Governor Greg Abbott, a Republican, on Friday signed legislation requiring a state permit to operate self-driving vehicles. The law, which takes effect September 1, signals that state officials from both parties want the driverless-vehicle industry to proceed cautiously. Tesla did not respond to requests for comment. The governor's office declined to comment. The law softens the state's previous anti-regulation stance on autonomous vehicles. A 2017 Texas law specifically prohibited cities from regulating self-driving cars. The new law requires autonomous-vehicle operators to get 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 permits for operators they deem a public danger. The law also requires firms to provide information on how first responders can deal with their driverless vehicles in emergency situations. The law's permit requirements for an "automated motor vehicle" are not onerous but require firms to attest their vehicles can operate legally and safely. It defines an automated vehicle as having at least "Level 4" autonomous-driving capability under a recognized standard, meaning it can operate with no human driver under specified conditions. Level 5 autonomy is the top level and means a car can drive itself anywhere, under any conditions. Compliance remains far easier than in some states, notably California, which requires submission of vehicle-testing data under state oversight. Bryant Walker Smith, a University of South Carolina law professor who focuses on autonomous driving, said it appears any company that meets minimum application requirements will get a Texas permit - but could also lose it if problems arise. "California permits are hard to get, easy to lose," he said. "In Texas, the permit is easy to get and easy to lose." MUSK'S SAFETY PLEDGES The Tesla robotaxi rollout comes after more than a decade of Musk's unfulfilled promises to deliver self-driving Teslas. Musk has said Tesla would be "super paranoid" about robotaxi safety in Austin, including operating in limited areas. The service in Austin will have other restrictions as well. Tesla plans to avoid bad weather, difficult intersections, and will not carry anyone below age 18. Commercializing autonomous vehicles has been risky and expensive. GM's Cruise was shut down after a serious accident. Regulators are closely watching Tesla and its rivals, Waymo and Amazon's Zoox. Tesla is also bucking the young industry's standard practice of relying on multiple technologies to read the road, using only cameras. That, Musk says, will be safe and much less expensive than lidar and radar systems added by rivals. (Reporting by Norihiko Shirouzu in Austin, Abhirup Roy in San Francisco and Akash Sriram in Bangalore ; Writing by Brian Thevenot; Editing by Peter Henderson, Chris Reese and Lisa Shumaker)
[36]
Elon Musk says Tesla launches robotaxis in Austin
AUSTIN (Reuters) -Tesla deployed a small group of self-driving taxis picking up paying passengers on Sunday in Austin, Texas, with CEO Elon Musk announcing the "robotaxi launch" and social-media influencers posting videos of their first rides. Musk called the moment the "culmination of a decade of hard work" in a post on his social-media platform X and noted that "the AI chip and software teams were built from scratch within Tesla." Teslas were spotted early Sunday in a neighborhood called South Congress with no one in the driver's seat but one person in the passenger seat. The automaker planned a small trial with about 10 vehicles and front-seat riders acting as "safety monitors," though it remained unclear how much control they had over the vehicles. In recent days, the automaker sent invites to a select group of influencers for a carefully monitored robotaxi trial in a limited zone. The rides are being offered for a flat fee of $4.20, Musk said on X. Tesla investor and social-media personality Sawyer Merritt posted videos on X Sunday afternoon showing him ordering, getting picked up and taking a ride to a nearby bar and restaurant, Frazier's Long and Low, using a Tesla robotaxi app. If Tesla succeeds with the small deployment, it still faces major challenges in delivering on Musk's promises to scale up quickly in Austin and other cities, industry experts say. It could take years or decades for Tesla and self-driving rivals, such as Alphabet's Waymo, to fully develop a robotaxi industry, said Philip Koopman, a Carnegie Mellon University computer-engineering professor with expertise in autonomous-vehicle technology. A successful Austin trial for Tesla, he said, would be "the end of the beginning - not the beginning of the end." Most of Tesla's sky-high stock value now rests on its ability to deliver robotaxis and humanoid robots, according to many industry analysts. Tesla is by far the world's most valuable automaker. As Tesla's robotaxi-rollout date approached, Texas lawmakers moved to enact autonomous-vehicle rules. Texas Governor Greg Abbott, a Republican, on Friday signed legislation requiring a state permit to operate self-driving vehicles. The law, which takes effect September 1, signals that state officials from both parties want the driverless-vehicle industry to proceed cautiously. Tesla did not respond to requests for comment. The governor's office declined to comment. The law softens the state's previous anti-regulation stance on autonomous vehicles. A 2017 Texas law specifically prohibited cities from regulating self-driving cars. The new law requires autonomous-vehicle operators to get 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 permits for operators they deem a public danger. The law also requires firms to provide information on how first responders can deal with their driverless vehicles in emergency situations. The law's permit requirements for an "automated motor vehicle" are not onerous but require firms to attest their vehicles can operate legally and safely. It defines an automated vehicle as having at least "Level 4" autonomous-driving capability under a recognized standard, meaning it can operate with no human driver under specified conditions. Level 5 autonomy is the top level and means a car can drive itself anywhere, under any conditions. Compliance remains far easier than in some states, notably California, which requires submission of vehicle-testing data under state oversight. Bryant Walker Smith, a University of South Carolina law professor who focuses on autonomous driving, said it appears any company that meets minimum application requirements will get a Texas permit - but could also lose it if problems arise. "California permits are hard to get, easy to lose," he said. "In Texas, the permit is easy to get and easy to lose." MUSK'S SAFETY PLEDGES The Tesla robotaxi rollout comes after more than a decade of Musk's unfulfilled promises to deliver self-driving Teslas. Musk has said Tesla would be "super paranoid" about robotaxi safety in Austin, including operating in limited areas. The service in Austin will have other restrictions as well. Tesla plans to avoid bad weather, difficult intersections, and will not carry anyone below age 18. Commercializing autonomous vehicles has been risky and expensive. GM's Cruise was shut down after a serious accident. Regulators are closely watching Tesla and its rivals, Waymo and Amazon's Zoox. Tesla is also bucking the young industry's standard practice of relying on multiple technologies to read the road, using only cameras. That, Musk says, will be safe and much less expensive than lidar and radar systems added by rivals. (Reporting by Norihiko Shirouzu in Austin and Abhirup Roy in San Francisco; Writing by Brian Thevenot; Editing by Peter Henderson, Chris Reese and Lisa Shumaker)
[37]
Tesla rolls out robotaxis in Texas test
Tesla deployed a small group of self-driving taxis picking up paying passengers on Sunday in Austin, Texas, with CEO Elon Musk announcing the "robotaxi launch" and social-media influencers posting videos of their first rides. The event marked the first time Tesla cars without human drivers have carried paying riders, a business that Musk sees as crucial to the electric car maker's financial future. He called the moment the "culmination of a decade of hard work" in a post on his social-media platform X and noted that "the AI chip and software teams were built from scratch within Tesla." Teslas were spotted early Sunday in a neighborhood called South Congress with no one in the driver's seat but one person in the passenger seat. The automaker planned a small trial with about 10 vehicles and front-seat riders acting as "safety monitors," though it remained unclear how much control they had over the vehicles. In recent days, the automaker sent invites to a select group of influencers for a carefully monitored robotaxi trial in a limited zone. The rides are being offered for a flat fee of US$4.20, Musk said on X. Tesla investor and social-media personality Sawyer Merritt posted videos on X Sunday afternoon showing him ordering, and taking a ride to a nearby bar and restaurant, Frazier's Long and Low, using a Tesla robotaxi app. If Tesla succeeds with the small deployment, it still faces major challenges in delivering on Musk's promises to scale up quickly in Austin and other cities, industry experts say. It could take years or decades for Tesla and self-driving rivals, such as Alphabet's Waymo, to fully develop a robotaxi industry, said Philip Koopman, a Carnegie Mellon University computer-engineering professor with expertise in autonomous-vehicle technology. A successful Austin trial for Tesla, he said, would be "the end of the beginning - not the beginning of the end." Most of Tesla's sky-high stock value now rests on its ability to deliver robotaxis and humanoid robots, according to many industry analysts. Tesla is by far the world's most valuable automaker. As Tesla's robotaxi-rollout date approached, Texas lawmakers moved to enact autonomous-vehicle rules. Texas Governor Greg Abbott, a Republican, on Friday signed legislation requiring a state permit to operate self-driving vehicles. The law, which takes effect Sept. 1, signals that state officials from both parties want the driverless-vehicle industry to proceed cautiously. Tesla did not respond to requests for comment. The governor's office declined to comment. "Easy to get, easy to lose" The law softens the state's previous anti-regulation stance on autonomous vehicles. A 2017 Texas law specifically prohibited cities from regulating self-driving cars. The new law requires autonomous-vehicle operators to get 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 permits for operators they deem a public danger. The law also requires firms to provide information on how first responders can deal with their driverless vehicles in emergency situations. The law's permit requirements for an "automated motor vehicle" are not onerous but require firms to attest their vehicles can operate legally and safely. It defines an automated vehicle as having at least "Level 4" autonomous-driving capability under a recognized standard, meaning it can operate with no human driver under specified conditions. Level 5 autonomy is the top level and means a car can drive itself anywhere, under any conditions. Compliance remains far easier than in some states, notably California, which requires submission of vehicle-testing data under state oversight. Bryant Walker Smith, a University of South Carolina law professor who focuses on autonomous driving, said it appears any company that meets minimum application requirements will get a Texas permit - but could also lose it if problems arise. "California permits are hard to get, easy to lose," he said. "In Texas, the permit is easy to get and easy to lose." Musk's safety pledges The Tesla robotaxi rollout comes after more than a decade of Musk's unfulfilled promises to deliver self-driving Teslas. Musk has said Tesla would be "super paranoid" about robotaxi safety in Austin, including operating in limited areas. The service in Austin will have other restrictions as well. Tesla plans to avoid bad weather, difficult intersections, and will not carry anyone below age 18. Commercializing autonomous vehicles has been risky and expensive. GM's Cruise was shut down after a serious accident. Regulators are closely watching Tesla and its rivals, Waymo and Amazon's Zoox. Tesla is also bucking the young industry's standard practice of relying on multiple technologies to read the road, using only cameras. That, Musk says, will be safe and much less expensive than lidar and radar systems added by rivals.
[38]
Tesla shares soar after first robotaxi rides hit the road in Austin, Texas
(Reuters) -Tesla shares jumped 10% on Monday, lifted by the long-awaited launch of the company's robotaxi service that CEO Elon Musk has for years championed as a key driver of the electric vehicle maker's lofty valuation. The automaker deployed a small fleet of self-driving taxis in Austin, Texas, on Sunday, marking the first time its cars have carried paying passengers without human drivers. The rides were being offered for a flat fee of $4.20 in a limited zone. The trial's success is crucial for Tesla as Musk has pivoted the company to self-driving cars and robots, shelving plans for mass-market dominance in the EV space as Chinese competition heats up and demand slows for its aging line-up of models. "It was a comfortable, safe, and personalized experience," said Wedbush Securities analyst Dan Ives, who took multiple robotaxi rides on Sunday and has long been a Tesla bull. "There was a moment where we drove up a narrow road going up a hill with cars parked on both sides with oncoming traffic and people opening their car doors into the road and the robotaxi masterfully maneuvered with patience and safety." Many social-media influencers also posted videos of their first rides on X, showing the cars navigating busy city streets by slowing down and making room for incoming traffic. Still, the tightly controlled trial - with about 10 vehicles and front-seat riders acting as "safety monitors" - is just the first step in what could be a years-long process of scaling up the service, according to some industry experts. Tesla, as well as rivals including Google-backed Waymo, have faced federal investigations and recalls following collisions. Industry experts have questioned the efficacy of Tesla's self-driving technology that depends mostly on cameras and AI, without redundant sensors such as lidar and radar, claiming fog, heavy rain and glaring sunlight can hamper safety. The company will also have to navigate a new Texas law taking effect September 1 that requires a state permit for self-driving vehicles and reflects bipartisan calls for a cautious roll-out. If Monday's gains hold, Tesla - the world's most valuable automaker - will add nearly $100 billion to its market value of about $1 trillion. The stock has declined about 12% so far this year, dragged down by concerns about demand and brand damage from Musk's embrace of right-wing politics in Europe and support for U.S. President Donald Trump. Still, Tesla trades at nearly 149 times forward earnings estimates, far above auto rivals such as Ford Motor at 9.3 and tech giants including Microsoft at 31.6. (Reporting by Aditya Soni in Bengaluru; Editing by Anil D'Silva)
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Tesla shares soar after first robotaxi test rides hit the road in Austin, Texas
(Reuters) -Tesla shares jumped over 9% on Monday after the electric-vehicle maker started testing its long-awaited robotaxi service, a key step toward proving the technology that CEO Elon Musk has for years touted as a crucial driver of its lofty valuation. The automaker deployed a small fleet of self-driving taxis in Austin, Texas, on Sunday, marking the first time its cars have carried paying passengers without human drivers. The rides were being offered for a flat fee of $4.20 in a limited zone. The trial's success is crucial for Tesla as Musk has pivoted the company to self-driving cars and robots, shelving plans for mass-market dominance in the EV space as Chinese competition heats up and demand slows for its aging line-up of models. Tesla told U.S. regulators on Monday that its answers on the safety of the robotaxi deployment are confidential business information and should not be made public, after the National Highway Traffic Safety Administration said it was reviewing answers given in response to its questions about the safety of the robotaxi in poor weather among numerous issues. "It was a comfortable, safe, and personalized experience," said Wedbush Securities analyst Dan Ives, who took multiple robotaxi rides on Sunday and has long been a Tesla bull. "There was a moment where we drove up a narrow road going up a hill with cars parked on both sides with oncoming traffic and people opening their car doors into the road and the robotaxi masterfully maneuvered with patience and safety." Many social-media influencers also posted videos of their first rides on X, showing the cars navigating busy city streets by slowing down and making room for incoming traffic. Still, the tightly controlled trial - with about 10 vehicles and front-seat riders acting as "safety monitors" - is just the first step in what could be a years-long process of scaling up the service, according to some industry experts. Tesla, as well as rivals including Google-backed Waymo, have faced federal investigations and recalls following collisions. Industry experts have questioned the efficacy of Tesla's self-driving technology that depends mostly on cameras and AI, without redundant sensors such as lidar and radar, claiming fog, heavy rain and glaring sunlight can hamper safety. The company will also have to navigate a new Texas law taking effect September 1 that requires a state permit for self-driving vehicles and reflects bipartisan calls for a cautious roll-out. If Monday's gains hold, Tesla - the world's most valuable automaker - will add nearly $100 billion to its market value of about $1 trillion. The stock has declined about 12% so far this year, dragged down by concerns about demand and brand damage from Musk's embrace of right-wing politics in Europe and support for U.S. President Donald Trump. Still, Tesla trades at nearly 149 times forward earnings estimates, far above auto rivals such as Ford Motor at 9.3 and tech giants including Microsoft at 31.6. (Reporting by Aditya Soni in Bengaluru and Juby Babu in Mexico City; Editing by Anil D'Silva and Shinjini Ganguli)
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Can robotaxis drive Tesla's $1 trillion journey?
has kicked off its longpromised robotaxi service in , using a small fleet of modified Model Ys. The rollout, which began on Sunday, represents the company's first paid, passenger-carrying trial - and a critical test of its camera-only self-driving vision. The service is limited to geo-fenced neighbourhoods, avoids airports and complex intersections, and includes a safety employee in the passenger seat. The driver's seat is empty, and remote operators stand by to intervene if needed. Chief executive confirmed via X that early rides cost a flat , and clips shared by influencers show seamless, albeit tightly controlled, journeys through the capital. share price jumped on Monday, a sign of tentative investor optimism following the launch. Analysts at said the launch framework was broadly expected, but noted the importance of attempt to scale a vision-only autonomous system. "If can prove this works safely at scale, its cost advantage over lidar- and radar-heavy systems could be significant", RBC said. They estimated that autonomy could make up around 60 per cent of valuation long-term. Still, the roll-out comes amid increasing regulatory scrutiny. On Friday, governor signed a law requiring autonomous vehicle operators to obtain DMV permits before removing human drivers - rules that take effect 1st September. Federal regulators are also active. The , NHTSA is still investigating claims about autopilot and full self-driving. A letter sent in May requested additional detail about the robotaxi's safety architecture. Unlike rivals like , which uses lidar, radar and highly detailed maps to guided vehicles, relies solely on cameras and AI. Musk argues that this makes the system cheaper and easier to scale - and eventually, more adaptable. Forrester VP analyst dubbed it a "low-key" launch and cautioned: " is betting on its scale and data advantage. But if the FSD system isn't a big leap forward from what's already on roads, it'll need an army of remote operators - adding costs and potential reputational risks". Meanwhile, competitors are already far ahead. has completed more than 10m driverless paid rides across several US cities, including and San Fransisco. Its vehicles operate without any in-car safety monitor. says a new "cyber cab" - purpose built for autonomy with no pedals or steering wheel - is on the way and will cost under . Musk has suggested as many as 1,000 robotaxis could be on roads "within months", with and in the expansion pipeline. But catching up to 's tech maturity and regulatory acceptance won't be easy, as Barclays analyst said: "There's still a long road ahead to build the infrastructure needed for full autonomy - both physically and legally". Still, supporters remain bullish, with Wedbush analysts - who took a ride in the new service - describing the experience as "safe, comfortable, and personalised".
[41]
Why Tesla's robotaxi launch was the easy part
(Reuters) -Tesla finally has a robotaxi. Now comes the hard part. The electric-vehicle maker deployed its first-ever driverless cabs in Austin, Texas, on Sunday in a small-scale test of carefully monitored Model Y vehicles. Next, the company faces the steep challenge of executing on CEO Elon Musk's ambition to refine the software and upload it to millions of Teslas within a year or so. Such a rapid expansion will prove extremely difficult, about a dozen industry analysts and autonomous-vehicle technology experts told Reuters. These observers expressed a range of views about Tesla's prospects but all cautioned against assuming a light-speed robotaxi rollout. Some pointed to advantages Tesla might exploit to overtake rivals including Alphabet's Waymo and a host of Chinese auto and tech companies. Tesla has mass-manufacturing capacity, and it pioneered remote software updates it can use for self-driving upgrades. The automaker also does not use sensors such as radar and lidar like Waymo and most rivals; instead, it depends solely on cameras and artificial intelligence. "A rollout could be really quick. If the software works, Tesla robotaxi could drive any road in the world," said Seth Goldstein, a Morningstar senior equity analyst, while cautioning that Tesla is still "testing the product." In Austin, Tesla launched a choreographed experiment involving maybe a dozen cars, operating in limited geography, with safety monitors in the front passenger seat; remote "teleoperators"; plans to avoid bad weather; and hand-picked pro-Tesla influencers as passengers. For years, Musk has said Tesla would soon operate its own autonomous ride-hailing service and also turn any Tesla, new or used, into a cash-generating robotaxi for its customers. That will be "orders of magnitude" more difficult than testing in Austin, said Bryant Walker Smith, a University of South Carolina law professor focused on autonomous-driving regulation. "It's like announcing that, 'I'm going to Mars' and then, you know, going to Cleveland," Smith said. Musk has said Tesla will reach Mars, in that metaphor, quite quickly: "I predict that there will be millions of Teslas operating fully autonomously in the second half of next year," he said in April. Musk and Tesla did not respond to requests for comment. Tesla shares ended 8.2% higher at $348.68 on Monday on investor enthusiasm over the robotaxi launch. Given Tesla's AI-dependent approach, its challenge will be machine-training robotaxis to handle complex traffic "edge cases," said Philip Koopman, a Carnegie Mellon University computer-engineering professor and autonomous-technology expert. That could take many years. "Look, how long has it taken Waymo?" Koopman asked. "There's no reason to believe Tesla will be any faster." LONG SLOG Waymo's self-driving efforts date back to 2009, when Google started its self-driving car project. An egg-shaped prototype took its first ride on public streets in 2015 - also in Austin. Waymo has taken since then to build a 1,500-robotaxi fleet in select cities. A Waymo spokesperson said it plans to add 2,000 more vehicles by the end of 2026. Some analysts believe Tesla can expand faster, in part because Waymo has helped pave the way by overcoming regulatory and technical challenges. "Waymo and other pioneers have helped to drive regulatory change and have made riders, pedestrians and other road users aware of autonomous vehicles," said Paul Miller, an analyst at market-research firm Forrester. Being a mass-manufacturer also helps Tesla, Miller said. Waymo buys Jaguar I-PACE SUVs and outfits them with more expensive sensors and technology than Tesla integrates into its vehicles. Waymo declined to comment on Tesla's robotaxi-expansion potential. The company's former CEO, John Krafcik, remains skeptical. The precautions Tesla employed in Austin reveal it does not have confidence its technology is safe at scale, Krafcik said. "And they shouldn't," he said. "It's not as safe as it needs to be, and falls well short of the robust approach and well-documented safety that Waymo has demonstrated." 'WRONG SIDE' OF THE ROAD Tesla's go-fast strategy could actually slow its progress and that of the autonomous-vehicle industry if it undermines public trust, some analysts said. Tesla has historically faced legal and regulatory trouble involving its Full Self-Driving (FSD) driver-assistance system, which is not fully autonomous. In one recent federal safety probe into Tesla, investigators are examining FSD's role in crashes - some fatal - involving rain or other inclement weather that interferes with the system's cameras. Before the Austin test, Musk posted on his social-media platform, X, that the robotaxis' technology would differ little from any Tesla, aside from a software update: "These are unmodified Tesla cars coming straight from the factory, meaning that every Tesla," he wrote, "is capable of unsupervised self-driving!" The automaker invited Tesla-friendly influencers to take its first robotaxi rides, and they generally cheered the experience. One social-media video posted by a robotaxi passenger, however, showed the vehicle proceeding through a four-lane intersection with a traffic light - and into the wrong lane, for about six seconds. No oncoming traffic was in the lane at the time. "Obviously we're on the wrong side of the double-yellow line here," said the passenger, Rob Maurer, in a video narration of the experience he posted on X, noting that he felt safe but that the car behind him honked at the "confusing maneuver." Maurer did not respond to requests for comment. Reuters verified the location of the video by matching the surrounding buildings, business and street signs to the intersection of West Riverside Drive and Barton Springs Road in Austin. Separately, a Reuters witness followed another Tesla robotaxi and measured its speed as it traveled at between 40 and 45 mph in a 35 mph zone on First Street, adjacent to the Texas School for the Deaf. A sign warned to watch for deaf pedestrians. (Reporting by Rachael Levy in Washington, Norihiko Shirouzu in Austin, Texas, and Abhirup Roy in San Francisco; Editing by Brian Thevenot and Matthew Lewis) By Rachael Levy, Norihiko Shirouzu and Abhirup Roy
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Tesla has begun its robotaxi service in Austin, Texas, marking a significant milestone in autonomous vehicle technology. The launch brings both excitement and scrutiny as the company navigates technical, regulatory, and safety challenges.
Tesla has officially launched its long-awaited robotaxi service in Austin, Texas, marking a significant milestone in the company's pursuit of autonomous vehicle technology. The service, which began on June 22, 2025, allows select customers to hail driverless Tesla Model Y SUVs for a flat fee of $4.20 per ride 12.
Source: Economic Times
The initial rollout is limited in scope, with approximately 10 Model Y SUVs operating in a defined area of South Austin 1. The service operates daily from 6:00 AM to 12:00 AM, with potential limitations during inclement weather 1. Notably, Tesla employees are present in the front passenger seat as "safety monitors" during these early rides 12.
Tesla CEO Elon Musk has described the robotaxi launch as the "culmination of a decade of hard work," praising the company's software and chip design teams 2. The vehicles are equipped with what Musk calls a new "unsupervised" version of Tesla's Full Self-Driving (FSD) software 1.
Tesla's approach to autonomous driving differs from competitors like Waymo. The company relies solely on cameras and artificial intelligence, eschewing additional sensors such as lidar and radar 13. This strategy has raised questions among industry experts about the system's efficacy in challenging weather conditions like fog, heavy rain, or glaring sunlight 3.
The launch comes amid evolving regulatory landscapes. Texas Governor Greg Abbott recently signed legislation requiring autonomous vehicle services to obtain a state permit before operating, effective September 1, 2025 2. Additionally, some Democratic lawmakers from the Austin area have called for a delay in the rollout until this new law takes effect 3.
Tesla has faced federal investigations and recalls related to its self-driving technology in the past 4. The company is taking a cautious approach with this initial rollout, including the presence of safety monitors and remote monitoring of the vehicles 3.
The market has responded positively to the launch, with Tesla's shares jumping 10% following the news 4. Musk has ambitious plans for rapid expansion, predicting "millions of Teslas operating fully autonomously" by the second half of 2026 5.
However, industry analysts and autonomous vehicle experts caution that scaling from the current small-scale test to millions of vehicles will be a significant challenge 5. The process of refining the software and ensuring safety across diverse driving conditions and locations is expected to be time-consuming and complex.
Early riders, including select influencers and analysts, have shared mostly positive experiences. Wedbush Securities analyst Dan Ives described the ride as "comfortable, safe, and personalized" 4. However, some observations have highlighted potential issues, such as a reported incident where a robotaxi briefly drove on the wrong side of the road 5.
Source: InsideEVs
Tesla's entry into the robotaxi market puts it in direct competition with established players like Waymo, which has been developing self-driving technology since 2009 5. While Tesla benefits from its mass-manufacturing capabilities and ability to remotely update vehicle software, it faces the challenge of proving the safety and reliability of its camera-only approach at scale.
Source: France 24
As Tesla moves forward with its robotaxi ambitions, the company must navigate technical challenges, regulatory requirements, and public perception. The success of this venture could significantly impact Tesla's valuation and the broader autonomous vehicle industry, making the coming months and years crucial for the company's future in this space.
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