Tesla has introduced dynamic pricing for its Robotaxi service in Austin, marking a shift from the flat-rate model the company launched earlier this summer. The change, introduced via version 25.7.10 of the Robotaxi app, means that customers will now pay fares based on the distance of their ride.
Previously, Tesla charged a flat $4.20 per ride when the Robotaxi debuted in June. That price was later raised to $6.90 after the company expanded service to cover more of Austin. The new pricing model means shorter trips will now cost less, with fares starting as low as $2.10 for approximately 0.9 miles, according to pricing details shared by Tesla observers online. Trips between 3 and 9 miles could cost up to $12.04.
By adopting a distance-based fare structure, Tesla’s Robotaxi now more closely resembles legacy taxi systems and ride-hailing platforms like Uber and Lyft. The shift could attract more riders, particularly those seeking affordable short-distance travel.
In addition to dynamic pricing, Tesla said the app update includes minor fixes and improvements. Previous app enhancements allowed users to edit destinations post-booking and provided navigation to guide riders from their location to the pickup point.
The Robotaxi service currently operates in Austin, including downtown and the University of Texas campus area. Tesla has signaled plans to expand the service to the Bay Area in California and into Arizona. In California, however, regulatory requirements will mandate that safety drivers remain behind the wheel during initial operations.