Tesla CEO Elon Musk has unveiled plans for the company’s upcoming paid robotaxi service, which is expected to launch in Austin this summer. Musk’s announcement during Tesla’s fourth-quarter earnings call on Wednesday provides further details about the anticipated service and its expansion.
Launching in Austin This Summer
Musk confirmed that Tesla’s robotaxi service will begin operating in Austin in June, with autonomous Teslas driving passengers without human drivers. He emphasized that the service is not a distant future development, but a reality that is just months away. “Teslas will be in the wild with no one in them in June in Austin,” Musk stated.
Tesla’s push toward full autonomy has already seen significant progress. According to Musk, the company has thousands of Teslas operating with unsupervised full-self-driving (FSD) at its Fremont factory in California. These vehicles are being used in testing, and the company plans to expand these tests to its factories worldwide in the near future.
A video released by Tesla on Thursday demonstrated Robotaxi Model Y vehicles autonomously navigating a 1.2-mile route from the Fremont factory to designated loading dock lanes. This showcases Tesla’s commitment to refining its autonomous driving technology.
Expansion Plans for US Cities and Beyond
Musk expressed confidence that Tesla will roll out unsupervised FSD in additional US cities by the end of 2025, with the potential for the technology to be available across North America in 2026. He did not provide specific details on which cities would be the first to receive the service.
Though the company has not disclosed which Tesla models will be part of the robotaxi fleet, Musk previously revealed that the Cybercab—a ride-hailing version of the Cybertruck—would eventually be part of the plan. The Cybercab, currently in development, is expected to begin mass production in 2026.
In a demonstration video, users can be seen using an app to order rides in a manner similar to Uber.
Safety as a Top Priority
Musk emphasized that safety is Tesla’s highest priority as the company rolls out its robotaxi service. “We just want to put our toe in the water, make sure everything is OK, then put a few more toes in the water, then put a foot in the water,” Musk said, highlighting the importance of thorough testing. He assured that Tesla is aiming for a safety standard “significantly above the average human driver” to mitigate potential risks.
“The standard has to be very high because at the moment, if there’s any kind of accident with an autonomous car, that immediately gets worldwide headlines,” Musk noted, referencing the intense scrutiny faced by autonomous vehicles in the event of an accident.
Addressing Concerns Over Autonomous Vehicle Accidents
Autonomous vehicle technology has faced its share of challenges over the years. High-profile incidents, such as Uber’s fatal 2018 crash involving a self-driving vehicle, have raised concerns. More recently, in 2023, GM’s Cruise faced backlash after one of its autonomous vehicles was involved in an incident that left a pedestrian severely injured. These incidents serve as reminders of the risks inherent in autonomous technology.
Tesla’s own track record with its Autopilot system shows one crash for every 5.94 million miles driven, which is far better than the average of one crash per 702,000 miles for all vehicles in the US, according to 2023 data from the National Highway Traffic Safety Administration (NHTSA).
Musk Optimistic About Timelines
While Musk acknowledged that his predictions are often optimistic, he expressed confidence that Tesla will achieve unsupervised FSD in most countries by 2026, though he noted that regulatory hurdles could affect the timeline. For example, he estimated that unsupervised FSD might be approved for use in Europe by May 2026, though he pointed out that navigating the regulatory landscape in Europe could be a lengthy process due to “a layer cake of regulations and bureaucracy.”
In China, Musk mentioned challenges in deploying unsupervised FSD because of restrictions preventing Tesla from training its systems locally. Instead, Tesla is utilizing online videos of Chinese streets to teach its systems about the country’s traffic laws and signage.
Tesla’s Vision for the Future: Owner Participation
A key element of Musk’s vision for Tesla’s autonomous ride-hailing service is allowing Tesla owners to rent out their vehicles as robotaxis when not in use. This concept, which Musk believes could help owners earn up to $30,000 annually, is expected to be launched next year. However, Musk clarified that this feature would not be available immediately, as the company first needs to ensure the service works smoothly.
“We just need to make sure everything works correctly, especially ensuring that people can order the car, it arrives at the right spot, and all payment and billing systems function properly,” Musk said. “It’s just a bunch of work that needs to be done to make sure the whole thing works.”
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