Tesla to launch driverless robo-taxi service in Austin

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Elon Musk announces Tesla's robo-taxi service starting in June in Austin, using fleet vehicles with FSD software

Source: Getty Images

Tesla CEO Elon Musk announced plans to initiate a paid ride-hailing robo-taxi service in Austin, Texas, in June, using vehicles from Tesla's own fleet, according to a report published by TechCrunch on Jan. 29. This service will operate without drivers, employing an "unsupervised" version of Tesla's Full Self-Driving (FSD) software, which Musk anticipates releasing to owners in California and various US regions within the year. However, the integration of owner-contributed cars into the fleet is projected to occur no earlier than 2026. Musk also highlighted 2025 as a pivotal year for Tesla, referencing October 2024's introduction of the Cybercab prototype, a vehicle designed without a steering wheel or pedals, and previous discussions of initiating a ride-hailing service in Texas and California with Tesla's Model Y sport utility vehicles and Model 3 sedans.

The announcement follows reports of Tesla engaging with Austin city officials to facilitate the service, although the city's response to these reports remains unconfirmed. Musk suggested a cautious approach to deploying the robo-taxi service, emphasizing initial tests on Tesla's Texas factory grounds and prioritizing public and passenger safety. He expressed Tesla's aim for the service's safety levels to significantly exceed those of average human drivers. Despite Musk's optimism, Tesla's method for measuring safety and comparing it to human driver standards, particularly through its so-called "vehicle safety report," has faced scrutiny for its lack of detailed crash data and the environmental conditions of the Autopilot-driven miles.

This content may be AI-assisted and is composed, reviewed, edited and approved by S&P Global.

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