On Sunday, Tesla kicked off its robotaxi service in Austin, Texas. This move is seen by supporters of Elon Musk as a potential springboard for the company’s future growth.

“Huge congratulations to the @Tesla_AI team for a successful @Robotaxi launch!” Musk shared on the X platform he owns.

“It’s the result of ten years of dedicated work.”

This launch comes as Musk shifts his focus back to his businesses following a turbulent period related to Donald Trump’s administration. Interestingly, the Model Y SUV will be the first vehicle used for this service, rather than the eagerly anticipated Cybercab, which is still not ready.

The long-awaited rollout follows a public spat earlier this month between Musk and the US president, with both exchanging harsh remarks. Since then, Musk has expressed regret over some of his comments, while his Texas operations have been preparing for this Austin initiative, which is part of Tesla’s larger strategy focused on autonomous driving and artificial intelligence, areas they believe could bring significant returns.

According to analyst Daniel Ives at Wedbush, the advancements in autonomous technology might create an additional market valuation of $1 trillion or more.

“Many people doubted Tesla’s vision for robotaxis, thinking we’d never see this day,” Ives noted, predicting that the previous administration would help clear obstacles for Tesla amid recent controversies.

Business-friendly Texas

One of the first users to try out the robotaxi was Tesla enthusiast Herbert Ong, who shared his experience live from inside a red vehicle that had someone in the passenger seat to ensure a safe ride.

This launch in Texas raises questions about how Tesla plans to address concerns regarding Musk’s past actions tied to Trump.

Tesla’s profits fell dramatically by 71% in the first quarter due to disappointing sales in several key markets.

Choosing Austin for this autonomous vehicle (AV) debut reflects Musk’s preference for a state with a pro-business regulatory environment.

“Texas law allows for AV testing and operations on its roads, as long as they comply with the same safety and insurance requirements as other vehicles,” stated the Texas Department of Transportation to AFP.

This year, the Texas legislature introduced a bill that mandates companies to obtain approval from the state’s Department of Motor Vehicles before they can operate autonomous vehicles on public roads. A group of Democratic lawmakers wrote to Tesla on June 18 requesting that they postpone testing until the law takes effect on September 1.

The legislators sought “comprehensive information to show that Tesla will follow the new regulations” if they decide to move forward with operations.

Taking it slow

Initially, Musk planned to launch the service on June 12 but postponed it, citing safety concerns.

“We prefer to proceed carefully,” Musk said in a May 20 interview with CNBC, indicating that Tesla would only roll out around ten autonomous vehicles in the first week.

However, he anticipates increasing that number to possibly 1,000 in the coming months. “Then we’ll expand into other cities… San Francisco, Los Angeles, San Antonio,” he added.

The service will run from 6:00 AM to midnight and will initially be available to a select group of users within a geofenced area, as shared by Tesla owner Sawyer Merritt on X.

Musk introduced the Cybercab last fall, which is designed without a steering wheel or pedals, but its production is not expected to start until 2026.

This launch comes well after Waymo introduced its own commercial robotaxi service.

In October 2024, the US National Highway Traffic Safety Administration (NHTSA) began investigating Tesla’s Full Self-Driving software, following reports of several accidents.

Last month, the agency requested further information from Tesla regarding its technology ahead of the Austin launch.

However, the NHTSA clarified that it does not pre-approve new technologies, saying, “Manufacturers must certify that each vehicle adheres to NHTSA’s stringent safety standards.”