Tesla will begin testing its robotaxi service in select areas of Austin, Texas, by the end of June, CEO Elon Musk said on Tuesday, reaffirming the company’s shift in focus toward autonomous driving amid increased regulatory scrutiny and weakening global sales.
Speaking in an interview with CNBC, Musk said the initial rollout will involve about 10 vehicles, with plans to scale up to roughly 1,000 in the following months. “We are actually going to deploy not to the entire Austin region, but only the parts that are the safest,” he said.
The pilot marks a pivotal moment for Tesla, which has delayed its low-cost electric vehicle project to concentrate on two long-term initiatives: robotaxis and its Optimus humanoid robot. “The only things that matter in the long term are autonomy and Optimus,” Musk said, underscoring his strategic pivot.
The announcement comes as Tesla grapples with declining sales and rising competition in the EV market, compounded by public backlash to Musk’s political activities. The CEO said he plans to scale back his involvement with former U.S. President Donald Trump’s campaign, saying, “My rough plan on the White House is to be there for a couple days, every few weeks, and to be helpful where I can be helpful.”
Tesla’s full self-driving (FSD) technology—central to its robotaxi ambitions—is currently under investigation by the National Highway Traffic Safety Administration (NHTSA) over reported collisions during low-visibility conditions. The agency recently asked Tesla to clarify how the new service will operate in poor weather.
Despite the regulatory headwinds, Musk said Tesla is in discussions with other automakers to license its FSD software. He also pointed to the broader role of artificial intelligence in his vision, highlighting developments at his xAI startup, which is building what he claims is the world’s largest supercomputer cluster, “Colossus,” in Memphis, Tennessee.
“So long as Nvidia is better than what we make, we’ll keep buying from Nvidia,” Musk said, noting xAI’s plan to deploy a million of the company’s Blackwell chips at its new data center facility.
While Musk said a merger between Tesla and xAI is “not out of the question,” he emphasized that such a move would require shareholder approval.
The success of the Austin trial could be critical to Tesla’s valuation, which many investors view as contingent on the company’s ability to lead in autonomous driving.