Tesla’s Robotaxis Begin Test Rides in Austin with Safety Drivers Onboard

Tesla has started testing its long-awaited robotaxis on the streets of Austin, Texas. On Sunday, a small number of Tesla vehicles gave rides to invited guests, including analysts, influencers, and shareholders, as part of a pilot program, BBC reported. 

Although the rides were labeled “robotaxi,” each car still had a human safety operator in the passenger seat. The vehicles used were regular Tesla models with a robotaxi logo, not the futuristic “Cybercab” design shown at Tesla’s “We, Robot” event in October.

Tesla CEO Elon Musk praised the company’s AI and chip design teams for the launch, calling it the result of a decade of hard work. He joked on social media that rides would cost “$4.20 flat.”

Industry analysts described the launch as “low-key,” with only a few vehicles operating in a small area of Austin. Still, the move signals Tesla’s ambition to catch up with rivals like Waymo (Google) and Zoox (Amazon), which already offer self-driving rides in multiple U.S. cities.

Tesla aims to stand out by using cheaper, camera-based technology instead of expensive sensors like LiDAR. The company also believes its massive fleet of vehicles and large data collection from past drives can help it gain an edge.

However, Tesla’s Full Self-Driving (FSD) system still faces criticism. U.S. safety regulators are reviewing how the system performs in bad weather. And some customers have raised concerns about its reliability.

Analysts warn that unless FSD shows major improvements, Tesla may need remote monitoring and backup drivers, which could increase costs and cause public embarrassment if the cars make mistakes.

Despite the challenges, Tesla claims its robotaxi service will eventually make roads safer, especially for pedestrians and cyclists. But the road ahead remains competitive, with companies worldwide racing to lead in the growing driverless taxi market, expected to reach €450 billion by 2035.

Meanwhile, other companies like General Motors have paused their robotaxi efforts after safety incidents, showing just how tough the race is in this high-stakes industry.