After much anticipation and ambitious commitments, Tesla has officially launched its driverless Robotaxi service in Austin, Texas. This rollout, which occurred over the weekend, represents the first instance of Tesla vehicles transporting paying customers without a human driver, a significant achievement that CEO Elon Musk described as the “culmination of a decade of hard work.

The Robotaxi service, utilizing modified Tesla Model Y vehicles, is currently available to a select group of social media influencers and content creators.

According to Musk, each ride costs a flat fee of $4.20. The pilot program is restricted to a geofenced area in Austin and operates between 6 am and midnight. Tesla has not yet disclosed a broader launch schedule or a long-term pricing plan.

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Videos posted online show the Robotaxis functioning in the busy South Congress neighborhood, with passengers seated alone in either the rear or front passenger seats. Although the vehicles appear to be fully autonomous, Tesla has placed a safety monitor in the front seat during these initial rides to oversee the operations.

The service is being operated with a fleet of about 10 to 20 vehicles under close supervision. Musk stated in a post on X (formerly Twitter) that Tesla developed both the AI chip and the software controlling the Robotaxi entirely in-house.

However, this launch coincides with increasing regulatory scrutiny. Just days before the launch, Texas Governor Greg Abbott signed new legislation requiring autonomous vehicle operators to acquire a state permit.

Although the law won’t be effective until September 1, it imposes stricter compliance requirements, including necessary safety assurances, emergency response protocols, and adherence to Level 4 autonomy standards, meaning that vehicles must function without human intervention under certain conditions.

 

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Tesla now faces strong competition in Austin, where Alphabet’s Waymo has already teamed up with Uber for ride-hailing services, and Amazon-backed Zoox is carrying out autonomous vehicle trials. While Musk has claimed that Robotaxi will soon expand to additional US cities, the company has yet to announce a definitive public rollout strategy.