What’s Tesla’s Robotaxi? Long-Awaited Service Kicks Off In Texas

Elon Musk‘s Tesla held a kick-off event over the weekend for a limited test run of its AI self-driving vehicle for a select few. The long-anticipated launch of this diving has been a decade in the making, Reuters reported. Throughout the years, Musk has promised the release of “Robotaxi” cars, but they haven’t been ready. On Sunday, that changed when 10 driverless Tesla automobiles were deployed in Austin, TX, to pick up paying passengers.

Tesla offered a test run of its Robotaxi service for a select few people

The event marked Tesla’s introduction of driverless cars, transporting commercial riders at a set price.

“The @Tesla_AI robotaxi launch begins in Austin this afternoon with customers paying a $4.20 flat fee!” Musk tweeted.

The @Tesla_AI robotaxi launch begins in Austin this afternoon with customers paying a $4.20 flat fee!

— Elon Musk (@elonmusk) June 22, 2025

Despite Tesla not clarifying how they would guide the Robotaxi in case of an emergency, each car had a designated “safety monitor” in the front passenger seat to oversee the transportation that took place within the South Congress neighborhood. 

Musk believes the innovative cars will become a crucial stream of income for Tesla. He also noted that this was the “culmination of a decade of hard work,” according to Reuters.

Rob Maurer, the host of the Tesla Podcast, posted a video clip showing off his Robotaxi experience on X with the caption, “Here’s my entire first Tesla Robotaxi trip from start to finish. Ten miles across south Austin. Timestamps in comments.”

In a follow-up tweet later that day, Maurer provided his feedback on why Tesla’s driverless car has an advantage over its competition, Waymo.

“After multiple Tesla Robotaxi and Waymo rides in Austin, I have to say Tesla is quite a bit smoother,” he said.

How Texas is balancing safety and innovation ahead of Tesla’s Robotaxi service launch

As Tesla geared up to launch its Robotaxi service, Texas Gov. Greg Abbott quietly shifted gears on how it handles autonomous vehicles two days ahead of the debut. He signed a new law requiring companies to secure a state permit before operating fully driverless cars on public roads, marking a notable departure from Texas’s previous hands-off stance. The law places oversight in the hands of the Texas Department of Motor Vehicles, granting them the authority to approve or revoke permits if safety concerns arise. 

This change will take effect on Sept. 1, 2025. Additionally, companies must now certify that their vehicles meet at least Level 4 autonomy, meaning they can function without a human driver under specific conditions. The law also requires firms to provide clear emergency protocols for first responders. While Texas isn’t adopting a California-style regulation, it’s clear that state leaders want to strike a balance between innovation and caution as autonomous vehicles hit the streets.

University of South Carolina law professor and autonomous vehicle expert Bryant Walker Smith shared that “California permits are hard to get, easy to lose. In Texas, the permit is easy to get and easy to lose.”

Now that it’s real, Musk says the company is being “super paranoid” about safety, limiting operations to specific zones, steering clear of tricky intersections, bad weather and restricting rides to those 18 and older. However, bringing autonomous vehicles to market hasn’t been smooth for the industry overall. Regulators are closely watching Tesla and its competitors, including Waymo and Amazon’s Zoox. 

Unlike its rivals, Tesla is going all-in on a vision-only system powered by cameras, ditching pricier lidar and radar tech. Musk claims it’s not only safer but far more cost-effective, though the gamble could set Tesla apart, for better or worse.