Tesla's robotaxi plans to 'launch' for a limited number of users in Austin. Here's what we know.
Tesla's robotaxi service launch in Austin is expected Sunday, and some are already being spotted on the road.
The anticipated launch comes years after several missed deadlines and an increasingly competitive — but shrinking — field.
General Motors's Cruise recently bowed out of the race, but Alphabet's Waymo has continuously ramped up its service and is now providing 250,000 rides a week in the San Francisco Bay Area, Los Angeles, Phoenix, and Austin, according to the company.
There's also Amazon's Zoox, which makes its own purpose-built robotaxi, and other software-focused companies that hope to provide autonomous driving features to original equipment manufacturer vehicles.
However, Elon Musk swears by Tesla's approach to autonomy.
On June 10, Musk reshared a video of a driverless Tesla with " Robotaxi" written on the side in Cybertruck font, making a left turn in Austin. He called its design "beautifully simple."
"These are unmodified Tesla cars coming straight from the factory, meaning that every Tesla coming out of our factories is capable of unsupervised self-driving," Musk said in another tweet.
During the company's Q1 earnings call in April, Musk described Tesla's self-driving capabilities as a "generalized solution using artificial intelligence."
The CEO has touted this approach before, which refers to Tesla's reliance on cameras, as opposed to a pricey hardware stack made up of sensors and cameras, and an AI that will use the visual input to drive the vehicle. This could allow for Tesla to scale autonomy quicker and at lower costs since, in theory, any Tesla model could be deployed as a robotaxi.
"I predict there will be millions of Teslas operating autonomously — fully autonomously — in the second half of next year," Musk said during the call.
Musk recently provided more details about the coming robotaxi launch. Here's what we now know about Tesla's robotaxi service — and some lingering questions.
What will Tesla's planned robotaxi rollout look like?
Morgan Stanley analyst Adam Jonas, who recently visited Tesla's Palo Alto office, said that the robotaxi launch will take place on public roads and will be "invite only."
Jonas also wrote that there will be "plenty of tele-ops to ensure safety levels."
Teleoperators refer to remote workers who can take some control of the vehicle if the autonomous driver gets stuck. This strategy differs from Waymo and Zoox, which also have remote human workers to provide suggestions or information about a potential path forward if a driver gets stuck.
BI previously reported that there had been discussion around using remote operators as safety drivers for the debut.
How many robotaxis will be at the launch?
It'll start small.
Musk said in a May 20 interview with CNBC that Tesla will launch with around 10 robotaxis in the first week. The automaker will "then increase it to 20, 30, 40," Musk said.
"It will probably be at 1,000 within a few months," Musk said.
Tesla was careful to call the robotaxi service we'll see in June a "pilot" rollout in the automaker's first quarter earnings call, which hints at the limited scale of the initial launch.
Musk has said he plans to expand the robotaxis to other cities, like San Francisco, following the Austin rollout, although he hasn't given an exact timeline on the expansion.
"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 during Tesla's fourth quarter earnings call in January. "With safety of the general public and those in the car as our top priority."
By the end of 2026, Musk said there could be over 1 million self-driving Teslas in the country.
"Once we make it work in a few cities, we can basically make it work in all cities in that legal jurisdiction," he said during a first-quarter earnings call.
Which Tesla cars will be used for the robotaxi launch?
The first set of Tesla robotaxis is expected to be Model Ys through a software update, according to Musk. The car spotted in Austin appears to be a refreshed Model Y with a robotaxi logo printed on its side.
"With the software update, it will become autonomous," Musk said in the company's first quarter earnings call. "To be clear, the Model Ys that we're talking about being autonomous in Austin in June are the Model Ys we make currently. There's no change to it."
It's unclear if the first batch of robotaxis will be managed directly by Tesla or if it will consist of privately owned Teslas through which owners will opt in to the service.
The CEO also clarified that the Cybercab is a separate product. In October 2024, Tesla unveiled a purpose-built, two-door robotaxi with no steering wheel.
"We've got a product called the Cybercab," he said during the first-quarter earnings call. "And then if any Tesla — which could be a (model) S, 3, X, or Y that is autonomous — is a robotic taxi or robotaxi. It's very confusing."
What will the business model look like?
Musk has compared the robotaxi business model to "some combination of Airbnb and Uber."
Musk said during the CNBC interview that Tesla has "millions of cars that will be able to operate autonomously," and Tesla owners will have the opportunity to "earn money by adding their car to the fleet for autonomous use."
"It's a combination of a Tesla-owned fleet and also enabling Tesla owners to be able to add or subtract their car to the fleet," Musk said.
Musk added in the interview that Tesla owners could make more in allowing the car to be added to the self-driving fleet than the lease would cost. The Tesla CEO has previously said owners could earn about $30,000 a year from the service.
"Just like Airbnb, you can rent out your spare bedroom or your house if you're not using it, and make money on it," Musk said. "And that's what we expect Tesla customers to be able to do."
Tesla has yet to unveil the commercial version of its FSD Unsupervised software. The software will be used in the robotaxi fleet and doesn't need a driver behind the wheel like its personal vehicles.
How can we order a Tesla robotaxi in June?
Tesla teased its ride-hailing mobile app last year.
A video of the app reveals a user requesting the service by pressing a black-and-white circle with the word "summon."
Within a few seconds, the app shows a map of a car three minutes from the pickup location. The app also allows users to adjust the climate settings before it arrives.
As of Sunday morning, several invited participants said they were still waiting for the app's release.
So, when will we get the Cybercab?
Tesla's Cybercab was unveiled at the "We, Robot" event last October. It's also a robotaxi, but it's a bit further out than the service launch date.
Volume production of Cybercab is still on schedule for 2026, Lars Moravy, Tesla's vice president of vehicle engineering, said during the company's first quarter earnings call.
Moravy said that the company is currently at the "B-sample validation" of the vehicle, which means Tesla is building the prototype of the car but using material that will be close to the final product.
"Big builds" or the next stage of vehicle-building before volume production is coming at the end of the second quarter, Moravy said.
Tesla anticipates that it will be able to pump out Cybercabs quickly at scale by using what the company calls its "unboxed" method of manufacturing.
Traditional car manufacturers build cars on an assembly line. Tesla is betting on a new method where different parts of the car are simultaneously assembled and then later combined.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNN
an hour ago
- CNN
Start your week smart: US strikes Iran, Pride rollbacks, Tesla robotaxis, NATO summit, Bezos' wedding
5 Things The Middle East LGBTQ issues RelationshipsFacebookTweetLink Follow If everything goes according to plan, Tesla's long-awaited robotaxi service will roll out today in Austin, Texas. Tesla's CEO Elon Musk, who's been talking about robotaxis for years, has cautioned that the launch date isn't set in stone. Musk, of course, is also CEO of SpaceX — and has said he hopes to land humans on Mars by 2026. That timeline may need an adjustment after his monster Starship rocket exploded last week. Here's what else you need to know to start your week smart. • The US entered into conflict with Iran on Saturday after President Donald Trump ordered warplanes to drop bombs on three nuclear sites inside the country, thrusting him squarely into an escalating Middle East conflict even as he holds out hope the matter can be resolved diplomatically. Follow CNN's full coverage here.• Bodies of three hostages — an IDF soldier and two civilians — recovered from Gaza• Record-breaking heat will impact millions in US This June marked the 50th anniversary of LGBTQ Pride celebrations in the nation's capital. In Washington, DC, and across the nation, Pride was the usual affair — parades, music, rainbow decorations — but some felt it was in some ways overshadowed by President Donald Trump's administration, which advocates say has rolled back rights for LGBTQ Americans. Ahead of this year's Pride Month, the Kennedy Center canceled a week's worth of events celebrating LGBTQ rights. The White House did not issue a Pride Month proclamation this year — or during Trump's first administration, reversing a tradition that started in 1999. 1️⃣ Pride and protest: Earlier this month, Washington, DC, hosted World Pride 2025, an international festival celebrating the LGBTQ community. The event included a parade and free concerts plus a march on the National Mall. 🏳️🌈 Icon spotlight: Harvey Milk was the first openly gay male politician elected to San Francisco's Board of Supervisors in 1977. The Trump administration ordered Milk's name be stripped from a US Naval Ship that had been named after him in 2019. Milk served in the Korean War and was forced to resign from the Navy due to his sexuality. 2️⃣ Brands stay quiet: Once common during Pride Month, LGBTQ-themed merchandise, rainbow decorations and social media campaigns were scaled back or silenced this year as some corporations avoid provoking the Trump administration, which plans to investigate companies with DEI programs. 3️⃣ Youth support and rights: The Trump administration announced last week the 988 Suicide & Crisis Lifeline's specialized services for LGBTQ youth will no longer be in operation starting July 17. The Supreme Court on Wednesday upheld Tennessee's ban on gender-affirming care for trans minors. 📸 In pictures: As a gay teen, his dad didn't support him. Now the pair are bringing drag shows to rural towns. 4️⃣ 'We're not afraid': CNN spoke with trans people over the age of 60 about their lives and what they've learned from watching the battle for trans rights unfold. Some say after watching decades of progress, the current moment feels like a step back. Others said they feel resilient. 5️⃣ Freedom under fire: With the Supreme Court's reversal of Roe v. Wade, some advocates worry its decision that ruled same-sex marriage as a fundamental right could be next. Southern Baptists recently called for Obergefell v. Hodges to be overturned, as well as a ban on gay marriage. Get '5 Things' in your inbox If your day doesn't start until you're up to speed on the latest headlines, then let us introduce you to your new favorite morning fix. Sign up here for the '5 Things' 2025 NATO summit will begin in the Netherlands amid the backdrop of US strikes on Iran and the ongoing war in Ukraine. One item on the table is whether all alliance members will agree to a broad defense spending target of 5% of gross domestic product, a key demand made by President Trump, who will attend the summit. Trump has frequently criticized NATO members for not spending enough money on defense and has threatened to leave the alliance. New York City will hold a Democratic mayoral primary. Eleven candidates are on the ballot, including former New York Gov. Andrew Cuomo and a pack of several progressive challengers led by Assemblyman Zohran Mamdani. Meanwhile, in Venice, the stage is set for the highly anticipated nuptials between multi-billionaire Jeff Bezos and his bride-to-be, Lauren Sanchez. Three days of celebrations will reportedly kick off on Bezos' $500-million superyacht, Koru, which will be anchored in the Venice lagoon. WednesdayThe Senate Commerce Committee is scheduled to vote on President Trump's nominee to lead the FAA. During a hearing earlier this month, airline executive Bryan Bedford was grilled by senators on critical safety-related issues, including the required hours needed for pilots, the outdated air traffic control system and ongoing problems at Ronald Reagan Washington National Airport. ThursdayJune 26 marks 10 years since the Supreme Court ruling that legalized same-sex marriage across the US. FridayThe Democratic Republic of the Congo and Rwanda will sign a peace agreement in Washington, DC, that aims to end the fighting in eastern Congo. Secretary of State Marco Rubio will attend the signing ceremony. 🎧 Cuomo comeback?In this episode of the 'One Thing' podcast, CNN's Gloria Pazmino previews Tuesday's Democratic mayoral primary in New York City, where former governor Andrew Cuomo will attempt a political comeback. Listen here. Prev Next 📸 Check out more images from the week that was, curated by the CNN Photo team. 👀 At a glanceIn the NBA Finals, the Indiana Pacers and the Oklahoma City Thunder play a winner-take-all Game 7 tonight in Oklahoma City. In Game 6 last week, the Pacers beat the Thunder 108-91 to tie the series at 3-3. And the 2025 NBA Draft is set for Wednesday. The Dallas Mavericks won the draft lottery in May, securing the coveted top overall pick and the right to possibly select Duke University star forward Cooper Flagg. 📺 TV + streamingThe fourth season of FX's Emmy-winning show 'The Bear' arrives on Hulu on Wednesday. And the third and final season of 'Squid Game' arrives on Netflix on Friday. 🍿 In theaters'F1: The Movie' stars Brad Pitt as a washed-up Formula 1 racing driver coaxed out of retirement to mentor a rookie driver played by Damson Idris. 'F1' opens on Friday. 🧠 Looking for a challenge to start your week? Take CNN's weekly news quiz to see how much you remember! So far, 30% of readers got eight or more questions right. How will you fare? 🎶 'Stonewall'Saturday marks the 56th anniversary of the Stonewall Riots, a watershed moment for the LGBTQ+ pride movement in New York City. This song was released to commemorate Stonewall's 50th. (Click here to view) 5 Things Sunday was edited and produced by CNN's Tricia Escobedo and Dan Wine.
CNBC
an hour ago
- CNBC
Musk's Tesla is launching robotaxis in Austin, Texas
After driverless Tesla Model Ys were spotted traversing Austin, Texas, streets on Sunday morning, CEO Elon Musk posted on his social platform X that Tesla's "robotaxi launch" would start this afternoon with rides for a flat fee of $4.20. A Reuters witness saw several Tesla "robotaxis" on Sunday morning in a popular area of the Texas capital called South Congress with no one in the driver's seat but one person in the passenger seat. Tesla planned to have front-seat riders acting as "safety monitors," though it remained unclear how much control they would have over the vehicles. Videos of driverless Teslas have also been posted on social media but it was not known if the vehicles carried any passengers. As the date of the planned robotaxi launch approached, Texas lawmakers moved to enact rules on autonomous vehicles in the state. Texas Gov. Greg Abbott, a Republican, on Friday signed legislation requiring a state permit to operate self-driving vehicles. The law does not take effect until Sept. 1, but the governor's approval of it on Friday signals state officials from both parties want the driverless-vehicle industry to proceed cautiously. A group of Democratic state lawmakers earlier this week asked Tesla to delay its planned robotaxi trial because of the legislation. Tesla did not respond to requests for comment. The governor's office declined to comment. The law softens the state's previous anti-regulation stance on autonomous vehicles. A 2017 Texas law specifically prohibited cities from regulating self-driving cars. In recent days, Tesla has sent invites to a select group of Tesla online influencers for a small and carefully monitored robotaxi trial, which the company has said would include 10 or 20 Model Y vehicles operated in a limited zone of Austin. The law requires autonomous-vehicle operators to get approval from the Texas Department of Motor Vehicles before operating on public streets without a human driver. It also gives state authorities the power to revoke permits if they deem a driverless vehicle "endangers the public," and requires firms to provide information on how police and first responders can deal with their driverless vehicles in emergency situations. The law's requirements for getting a state permit to operate an "automated motor vehicle" are not particularly onerous but require a firm to attest it can safely operate within the law. It defines an automated vehicle as having at least "Level 4" autonomous-driving capability under a recognized standard, meaning it can drive itself with no human driver under specified conditions, such as within a limited area. Level 5 autonomy is the top level and means a car can drive itself anywhere, under any conditions. Compliance remains far easier than in some states, most notably California, which requires extensive submission of vehicle-testing data under state oversight. The Tesla robotaxi launch, which the company warned might be delayed, comes after more than a decade of Musk's unfulfilled promises to deliver self-driving Teslas. Most of Tesla's sky-high stock value now rests on its ability to deliver robotaxis and humanoid robots, according to many industry analysts. Tesla is by far the world's most valuable automaker. Musk has said Tesla would be "super paranoid" about safety for the Austin rollout. The company planned to operate only in areas it considered the safest. The service in Austin will have other restrictions as well. Tesla plans to avoid bad weather, difficult intersections, and will not carry anyone below the age of 18. Musk has said he is ready to delay the start for safety reasons, if needed. The planned launch has generated buzz among Tesla fans. "Wow. We are going to ride in driverless Teslas in just a few days. On public roads," posted Omar Qazi, who has 635,200 followers on X, writes often about Tesla using the handle @WholeMarsBlog, and received an invite. Commercializing autonomous vehicles has been risky and expensive. GM's Cruise was shut down after a fatal accident and regulators are closely watching Tesla and its rivals, Alphabet's Waymo, which runs a paid robotaxi service in several U.S. cities, and Amazon's Zoox. Tesla is also bucking the young industry's standard practice of relying on multiple technologies to read the road, using only cameras. That, Musk says, will be safe and much less expensive than lidar and radar systems added by rivals.
Yahoo
an hour ago
- Yahoo
Toyota makes a tariff move customers are going to hate
Toyota makes a tariff move customers are going to hate originally appeared on TheStreet. While President Donald Trump's social media posts make it seem as though his tariff moves are executed at his whim, it is clear that at least some industries have a seat at the negotiating table. The auto industry's top executives have said they are in close contact with the White House and have even praised the president and his White House team for hearing their concerns. However, it is also clear that Trump's interest in protecting the auto industry's bottom line is Stellantis, and General Motors — America's Big 3 automakers — have all said that Trump's tariffs will cost them billions, and they've pulled their guidance due to a lack of visibility. Trump has made it clear to every industry that he doesn't want prices to increase, even going as far as telling companies like Walmart to just 'EAT THE TARIFFS.' So, every time the auto industry has been observed raising prices in recent months, it has denied that it has anything to do with tariffs. Others, like Mazda, have indeed eaten the tariffs, with the Japanese automaker sending a letter to its U.S. dealers informing them that it would not raise its sticker prices or tack on import fees for any vehicles already on dealership lots or that will come into the country before May 1. Toyota is the latest Japanese automaker to make a pricing move, but it isn't blaming the move on tariffs. Toyota sold over 2.3 million vehicles in the U.S. last year, a 3.7% year-over-year increase. Between April 2024 and March 2025, the company built 1.96 million units in the U.S., according to Statista. So, despite a U.S. production capacity that can handle nearly 2 million vehicles a year, Toyota still ships in nearly half a million vehicles from overseas to sell in the U.S. On June 21, Toyota said that prices for several Toyota and Lexus brand vehicles will rise by an average of $270 and $208, respectively, starting in July, according to an email seen by Bloomberg. While the price increase could be seen as a response to the 25% duties Trump has placed on auto imports, Toyota insists that the move is just part of its regular price review April, fellow Japanese automaker Mitsubishi said it would hold its vehicles in port for the foreseeable future instead of offloading them and being forced to pay duties. "We have sufficient stock on the ground at dealers for the moment to not impact customer choice," the company said at the time. While it was unclear how much cargo was in the ports, Mitsubishi's 330 U.S. dealers sold 109,843 vehicles in the U.S. in 2024, a 25.8% year-over-year increase and the brand's best performance since 2019. Earlier this month, the company announced that it is raising prices on three models, also saying that the move was just a regular adjustment and not a reaction to tariffs. Japanese car companies aren't the only ones afraid to pin their price increases on tariffs. In May, Ford sent a notice to dealers saying it planned to raise prices on the Mustang Mach-E electric SUV, Maverick pickup truck, and Bronco Sport SUV by as much as $2,000 on some models. Those vehicles are made in Mexico. More Automotive news Toyota makes surprising move to beat Tesla in key market A Ford spokesperson confirmed that the price increases will be seen on vehicles built after May 2. Those vehicles will start arriving on dealer lots in late June. The company emphasized that its employee pricing promotion remains for all of its vehicles through the July 4 weekend. Just like Mazda and Toyota before it, the company says the increase was due to its usual midyear pricing actions, but it was also "combined with some tariffs we are facing. We have not passed on the full cost of tariffs to our customers."Toyota makes a tariff move customers are going to hate first appeared on TheStreet on Jun 22, 2025 This story was originally reported by TheStreet on Jun 22, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
