Elon Musk launches robot taxi service June 22 in Austin

Published: 2025-06-11 09:00:25 ET TSLA

Published on 06/11/2025 at 09:00

Key takeaways

Elon Musk, CEO of Tesla, has announced ambitious plans to launch a robotic taxi service as early as June 22 in Austin, Texas. This initial rollout would see 10-20 vehicles operating in a designated area of the city. Musk emphasized Tesla's commitment to safety, saying the company is "paranoid" about making sure its autonomous driving technology is reliable. He further revealed Tesla's goal of delivering a driverless Model Y directly to a customer on June 28.

However, there is skepticism about the feasibility of this timeline and the reliability of Tesla's autonomous system. Experts question the use of standard Model Y vehicles for the robotic taxi service and highlight concerns about the reliability of the technology. The U.S. National Highway Traffic Safety Administration (NHTSA) has also raised numerous questions that Tesla must answer by June 19.

Technical issues and controversy

A major point of contention is Musk's decision to rely solely on cameras for autonomous driving rather than the more expensive lidar technology used by leading robot taxi companies such as Waymo. Lidar sensors use laser beams to map the environment and detect objects and pedestrians, even in difficult lighting conditions. While relying solely on cameras provides a cost advantage for Tesla, it raises questions about the system's ability to handle complex real-world scenarios.

Despite these doubts, Musk remains confident in his vision, claiming that millions of Tesla vehicles already have the necessary hardware for autonomous driving. He positions Tesla as a future leader in the robotaxis industry.

Tesla demonstrated its autonomous driving capabilities last fall with a robotic cab prototype without a steering wheel and pedals. Production of this vehicle is scheduled for next year. Recent footage showed a driverless Tesla driving through the streets of Austin, although it is important to note that these vehicles can also be controlled remotely, just like Waymo's robotic cabs.