Tesla Launches Robotaxi Service With Model Y in Austin

Tesla has officially launched its first public robotaxi service in Austin, Texas, offering paid rides in autonomous vehicles without human drivers. The limited rollout, which began Sunday, involves approximately 10 Model Y vehicles operating within a designated area of South Congress. While the vehicles are driverless, front-seat supervisors act as “safety monitors” during rides.

CEO Elon Musk hailed the event as “the culmination of a decade of hard work,” emphasizing Tesla’s reliance on its proprietary vision-based system rather than lidar or radar technology, setting it apart from competitors like Waymo and Zoox.

The rides, priced at US$4.20 per trip, are currently available to a small group of invited users. The service comes with operational constraints, including avoiding adverse weather, complex intersections, and passengers under 18 years old.

“This is the result of ten years of hard work. The AI chip and software teams were built entirely within Tesla,” Musk posted on X, sharing user videos documenting their rides. While some clips highlighted smooth navigation, others raised concerns about traffic rule compliance.

In one video shared by Tesla investor Rob Maurer, a robotaxi improperly entered an intersection from a left-turn-only lane, hesitated mid-turn, and briefly diverted into an oncoming traffic lane before correcting its path. The maneuver violated basic traffic laws, including crossing a double yellow line.

Another clip from influencer Sawyer Merritt showed a Tesla robotaxi exceeding a posted speed limit of 48 km/h, briefly reaching 56 km/h. Similarly, YouTuber Herbert Ong observed his robotaxi traveling at 39 mph in a 35 mph zone during a livestream.

Tesla, the Austin Police Department, and the National Highway Traffic Safety Administration (NHTSA) have not commented on these incidents. However, the launch follows a February 2023 recall of over 362,000 Tesla vehicles after the NHTSA determined the company’s driver-assistance system could permit traffic law violations.

The rollout coincides with new legislation in Texas requiring autonomous vehicle operators to obtain state permits. Signed by Governor Greg Abbott, the law takes effect on Sep. 1 and mandates documentation verifying the vehicles’ legal and safe operation under Level 4 autonomy.

The law also requires operators to provide first responders with emergency interaction guidelines and grants the Texas Department of Motor Vehicles the authority to revoke permits if operations are deemed unsafe.

Tesla’s strategy of relying exclusively on camera-based perception systems diverges from the industry standard of using multiple sensors for redundancy and reliability. While this approach reduces costs, it has drawn heightened scrutiny from regulators and competitors.