Tesla’s long-awaited robotaxi service officially launched in Austin, Texas over the weekend, marking a significant step forward in the company’s self-driving ambitions and sending its shares up nearly 10% on Monday.
The limited pilot includes 10 to 20 Model Y electric SUVs operating autonomously within a geofenced area of Austin. Rides are currently offered by invitation only and priced at a flat $4.20 per trip. Tesla fans, influencers, and shareholders are among the early participants. Although the vehicles operate without human drivers, a Tesla employee rides in the front passenger seat with the ability to intervene if necessary, and a remote safety team monitors each ride.
CEO Elon Musk celebrated the launch on X, describing the milestone as the “culmination of a decade of hard work,” and credited Tesla’s AI and hardware teams for bringing the robotaxi vision to life.
Early feedback has been largely positive, with smooth ride reports and minimal interventions. In one case, a vehicle automatically pulled over for an emergency vehicle — a capability enabled by cabin microphones that detect sirens.
Analyst Dan Ives of Wedbush called the pilot a “peek into the golden age of Tesla,” reaffirming a $500 price target. “The rides were comfortable, safe, and personalized,” Ives said, noting the integration of Tesla accounts with Netflix and Spotify. Others were more cautious. UBS raised its price target to $215 but maintained a ‘Sell’ rating, arguing that “robotaxi optimism is already baked into the valuation.” Barclays highlighted the challenges of scaling the service, particularly the need to eventually eliminate human monitoring.
While Texas regulators approved the pilot, questions remain about its long-term legal framework. New state laws on autonomous vehicles will take effect in September, and some lawmakers had urged Tesla to wait. The bill was signed into law last Friday.