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| (FILES) Tesla's Cybercab robotaxi is displayed during the AutoMobility LA 2024 auto show at the Los Angeles Convention Center in Los Angeles, November 21, 2024. Tesla is expected to begin offering robotaxi service on June 22, 2025 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. (Photo by Robyn Beck / AFP) |
Firstsitenews-Tesla is set to roll out its highly anticipated robotaxi service this Sunday in Austin, Texas — a pivotal step that Elon Musk’s supporters believe could signal a major new growth chapter for the electric vehicle company.
The pilot phase will deploy the Model Y SUV, not the futuristic Cybertruck, which is still in development. This move marks a renewed focus by Musk on his business empire after a controversial and short-lived involvement in Donald Trump’s administration, which ended in a public falling out between the two men. Musk has since expressed regret over their feud.
Tesla’s upcoming launch in Texas is part of a broader push into autonomous vehicle (AV) and artificial intelligence technologies. Analysts, including Wedbush’s Daniel Ives, view it as a potential game-changer for the company’s valuation possibly adding up to $1 trillion in market value.
“Many doubted this day would ever arrive,” Ives said, predicting that the post-Trump era would allow Tesla to navigate past regulatory hurdles and usher in what he described as “the golden era of autonomy.”
Texas: A Friendly Launchpad
Austin was chosen for the initial launch thanks to Texas’s relatively accommodating regulatory environment. The Texas Department of Transportation stated that the state permits AV testing and operations provided the vehicles meet standard safety and insurance requirements.
However, Tesla’s timing could face legal challenges. A new law passed by the Texas legislature this year requires companies to secure prior authorization from the state’s Department of Motor Vehicles before deploying autonomous vehicles without human drivers. The law, which takes effect on September 1, prompted seven Democratic lawmakers to issue a letter urging Tesla to delay its launch.
"If Tesla proceeds this weekend, we request a detailed response demonstrating compliance with the new law," the lawmakers wrote on June 18.
Cautious Rollout Strategy
Originally slated for June 12, the launch was delayed as Musk cited safety concerns. In a May interview with CNBC, he explained that Tesla intends to “take it slow,” beginning with just 10 vehicles and gradually scaling up to 1,000 in a few months.
Tesla plans to operate the service from 6 a.m. to midnight in a limited, geofenced area of Austin, accessible only to selected “early access” users by invitation. The information was confirmed Friday by Tesla owner Sawyer Merritt on X (formerly Twitter), with the company’s approval.
Though Musk has previously showcased a fully autonomous “Cybercab” without pedals or a steering wheel, that vehicle isn’t expected to enter production until 2026.
Regulatory and Safety Concerns
Tesla is entering the robotaxi space well after competitors like Waymo, which already operates commercial AV services in several U.S. cities.
The launch also comes under the shadow of safety investigations. In October 2024, the U.S. National Highway Traffic Safety Administration (NHTSA) opened an inquiry into Tesla’s Full Self-Driving (FSD) software after receiving crash reports. The agency has since requested additional details about Tesla’s technology in light of the Austin rollout.
However, the NHTSA emphasized that it does not “pre-approve” vehicle technologies. Instead, manufacturers are responsible for certifying compliance with safety standards, while the agency investigates potential defects post-deployment.
As Tesla embarks on this ambitious journey into autonomous ride-sharing, the company faces both immense opportunities and heightened scrutiny. Whether the Austin pilot paves the way for a new mobility era or invites more regulatory hurdles remains to be seen.
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