Earlier in the year, Elon Musk informed investors that Tesla planned to introduce autonomous driving technology in Austin and California, aiming for a robotaxi service launch in Texas in June. The service will initially use Model Y vehicles instead of Cybercabs. Tesla has obtained a permit to operate a driver-assisted taxi service in California, though the company will require additional permits to operate a service without drivers. Discussions have commenced with Palo Alto, the location of Tesla’s engineering headquarters, aiming to eventually provide a ride service there. Due to Texas’ more lenient regulations, Tesla does not require additional permits or government approval to operate a driverless service in Austin.
The success of the Cybercab, expected to enter production in 2026, holds particular importance as Tesla does not appear to have many other upcoming car projects. A long-anticipated, more affordable electric vehicle was downgraded last year to a modified, less costly version of the Model Y rather than an entirely new vehicle. Recently, Reuters reported that this affordable version was delayed by several months.
Tesla’s robotaxi service will place it in direct competition with Waymo, a sister company of Google, which has been running a paid, self-driving taxi service in Phoenix, Arizona, and San Francisco for nearly two years. Waymo also operates in Los Angeles and Austin, with plans to expand to Atlanta and Miami. Amazon’s Zoox is preparing to launch a service in Las Vegas and later in San Francisco.
Both Waymo and Zoox have adopted more cautious approaches to self-driving, involving years of testing with supervising drivers. Tesla’s “Full Self-Driving” feature is available for an additional fee on all its U.S. vehicles, but the company advises that drivers must stay attentive. Nevertheless, Tesla has highlighted its intention to advance from this “level 2” autonomy to full unsupervised driving.
Technology experts have expressed skepticism about Tesla’s ambitious timelines. Bryan Reimer, a research scientist at MIT and leader of the Advanced Vehicle Technology consortium, which studies interactions with automated driving features, emphasized the high levels of safety and reliability expected from autonomous vehicle services. He remarked, “I think the world is wondering, can Tesla do this?” Reimer believes Tesla might manage a demonstration, likely with a safety driver.
A successful Tesla robotaxi service will require numerous efforts beyond the complex technology enabling vehicle operation. Jeff Schneider, a robotics researcher at Carnegie Mellon University and former contributor to Uber’s self-driving car project, pointed out the importance of safety drivers in tasks such as answering passenger questions, assisting with navigation, and managing pick-up and drop-off processes.
In a presentation for investors, Tesla indicated potential impacts from “evolving trade policy,” which could influence the company’s global supply chain and production costs. According to the presentation, these dynamics, coupled with shifting political sentiments, might significantly affect product demand in the near term.
Musk assured investors that Tesla remains the “least impacted” car manufacturer by tariffs, attributing this position to the majority of vehicle production and assembly occurring in the U.S. He remarked, “That puts us in a better position than many of our competitors.” Musk stated his intent to continue discussions with the president regarding tariff policy and expressed a commitment to advocating for lower tariffs.
This story is developing, and updates will be provided as more information becomes available.
