Tesla began a small-scale deployment of its self-driving taxi service in Austin over the weekend, with a handful of modified vehicles picking up paying passengers as part of a carefully monitored pilot trial. The launch, announced by CEO Elon Musk, comes after years of development and is being closely watched as Tesla races to fulfill its long-standing promise of a fully autonomous transport service.
A fleet of about ten Tesla vehicles equipped for autonomous driving began operations on Sunday, circulating in Austin’s South Congress neighborhood. The vehicles featured no one in the driver’s seat but included a Tesla employee seated in the front passenger position to act as a “safety monitor.” The exact level of control available to these monitors remains unclear.
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.
— Elon Musk (@elonmusk) June 22, 2025
“This marks the culmination of a decade of hard work,” Musk wrote on his social media platform X, referring to the launch. He highlighted that Tesla’s autonomous driving systems and AI chips were developed entirely in-house.
Tesla invited a select group of social media influencers to try out the new service. Rides were offered at a flat fee of $4.20 and operated within a geo-fenced area under restricted conditions. Participants noted that the vehicles avoided complex intersections and inclement weather. Children under 18 are not permitted to use the service.
First @robotaxi experiences in thread below
— Tesla (@Tesla) June 22, 2025
While the robotaxi trial marks a milestone for Tesla, analysts and industry experts caution against reading too much into the initial launch. “A successful Austin trial would be the end of the beginning — not the beginning of the end,” said Philip Koopman, a Carnegie Mellon professor specializing in autonomous vehicle safety.
Tesla’s rollout comes as Texas prepares to implement stricter regulations for autonomous vehicles. Governor Greg Abbott recently signed legislation requiring permits for AV operations on public roads, marking a departure from the state’s earlier hands-off approach. The new law, effective September 1, also enables state regulators to revoke AV permits in cases where public safety is at risk.
— Tesla (@Tesla) June 22, 2025
Compliance with the Texas law is relatively straightforward, requiring companies to demonstrate Level 4 autonomy under defined conditions and to provide emergency protocols for first responders. However, enforcement flexibility may still shape how aggressively Tesla or other companies scale operations. “In Texas, the permit is easy to get and easy to lose,” said Bryant Walker Smith, a law professor at the University of South Carolina.
Musk has long maintained that Tesla’s camera-only “vision” approach to self-driving will ultimately prove safer and more cost-effective than the lidar and radar systems favored by competitors such as Alphabet’s Waymo and Amazon-backed Zoox. However, the company’s deviation from industry norms and ongoing scrutiny from regulators continue to raise questions about safety, scalability, and long-term viability.
Despite the trial’s modest size and operational constraints, Tesla’s robotaxi launch signals a new phase in the company’s broader ambitions. Still, with a history of delayed timelines and unfulfilled autonomy goals, the company’s path to fully driverless mobility remains uncertain.