Musk reveals Tesla robotaxi rollout plans: What is it, how does it work?

Tesla CEO Elon Musk has announced the tentative rollout of the company's long-awaited robotaxi service, starting June 22 in Austin, Texas. Musk made the statement in response to a query on social media platform X, adding that the launch date could change depending on developments. "We are being super paranoid about safety, so the date could shift," he said.
Last week, Musk shared a video showing a Tesla vehicle navigating Austin autonomously, without a driver behind the wheel. The footage signals that Tesla is moving closer to launching its self-driving taxi service. Musk also revealed that a Tesla vehicle will, for the first time, 'fully drive itself from the factory end of line all the way to a customer house' on June 28.
What is a robotaxi?
A robotaxi is a fully autonomous vehicle designed for ride-sharing without a human driver. These vehicles utilise a combination of AI, sensors, cameras, radar and LiDAR technology to interpret and respond to their environment. Many robotaxis, including Tesla's, run on electric power or hybrid systems, offering both technological advancement and environmental sustainability.
Benefits of robotaxi services
Robotaxis are expected to transform urban transport by lowering operational costs, improving safety, and offering on-demand service round the clock. By eliminating human error, these vehicles can potentially reduce road accidents. Their electric design also contributes to lowering emissions and easing urban pollution levels.
Inside Tesla's robotaxi plans
The Tesla robotaxi seen in the recent video is a Model Y with 'robotaxi' branding, equipped with Tesla's Full Self-Driving (FSD) software. 'With the software update, it will become autonomous,' Musk said. He clarified that the vehicles set to operate in Austin are standard production Model Ys with no physical changes.
This model is distinct from Tesla's 'cybercab', unveiled in October 2024, which is a separate, purpose-built autonomous vehicle still under development.
In a recent CNBC interview, Musk said Tesla's robotaxi will operate under remote supervision and be confined to geofenced zones considered safe for autonomous navigation. The initial rollout will involve 10 robotaxis, with expansion planned across cities such as Los Angeles, San Antonio, and San Francisco.
Facing off with Waymo and Cruise
Tesla's robotaxi will enter a competitive landscape currently led by Alphabet's Waymo, which has offered self-driving cab services in cities including Austin since 2020. Waymo handles about 250,000 trips weekly using custom-modified Chrysler Pacifica and Jaguar I-PACE vehicles with advanced sensor arrays.
Another key player is Cruise, backed by General Motors. It had begun operating autonomous Chevrolet Bolt EVs in cities like San Francisco and Phoenix before a major accident in 2023 prompted a pause. Cruise is now focused on rebuilding trust and plans to relaunch its Origin robotaxi—a steering wheel- and pedal-free vehicle—for limited use in the near future.
Tesla's primary advantage lies in its vertically integrated system. It controls everything from vehicle hardware and software to its charging infrastructure. The use of existing Model Y production units could allow Tesla to scale its robotaxi service faster than rivals, who are reliant on mass-producing bespoke vehicles.

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