After Tesla launched a “early employee set” in Austin, Texas with a fully autonomous (FSD) monitored ride service and a “set of early employees” in the San Francisco Bay Area, Robotaxis becomes a reality.
The announcement took place on Wednesday at X.
“We have completed over 1.5k trips and 15k miles of driving,” the social media post said. “The service will help develop and validate FSD networks, mobile apps, vehicle allocation, mission control and remote assistance operations.”
The US electric car manufacturer has pledged to start services in Austin by June, Reuters reports.
CEO Elon Musk has promised that self-driving cars will “run the financial needles in a substantial way” by the second half of next year.
In a call Tuesday, Musk said Tesla would first use the existing Model Y vehicle equipped with autonomous driving software. Automakers are also developing dedicated autonomous models called cybercabs, and production will begin next year.
Musk said he hopes by the second half of 2026 that autonomous driving technology will “influence the company’s revenue and begin to become basic.”
“We expect millions of Teslas to operate completely autonomously later next year,” he said.
With the core automotive business struggle, where vehicle sales have fallen by 13% in the first quarter, it is expected that Tesla can overcome the technical hurdles of autonomous driving and demonstrate a sound business model for driverless car services.
Most bullish investors and analysts tie the majority of Tesla’s stock price to plans for a massive Robotaxis and autonomous subscription business.
Investors and analysts in the coming months are looking for specific indications that Tesla can expand its Robotaki business and navigate technical challenges.
Blake Anderson, associate portfolio manager for the Carson Group, a Tesla investor, said he’d like to see details in the coming months, including how much Tesla charges per mile in Austin, and whether it’s profitable. He also wants more details on Tesla’s safety records and how often Austin vehicles leave autonomous driving modes.
“Safety is something they control most, so I want to prove that they are ironed out to control,” Anderson said according to Reuters. “And then I have a bigger look at the nationwide rollout.”
Others aren’t very sure about Musk’s prediction that Robotaxis will play a key role in revenue by the second half of next year. Masks in the phone Tuesday said the launch of the Austin Robotaxi begins with a 10 or 20 Model Y vehicle, with Tesla “will expand rapidly thereafter” and will expand to other US markets later this year.
