Tesla Launches Limited Robotaxi Trial in Austin

Tesla has begun a small-scale robotaxi trial in Austin, Texas, deploying about 10 self-driving cars to pick up paying passengers in a limited area, as the state enacts new regulations for autonomous vehicles.

On Sunday, Tesla CEO Elon Musk announced the launch of the "robotaxi" service in Austin, calling it the culmination of a decade of work on Artificial Intelligence chips and software developed in-house. The trial involves roughly 10 vehicles operating without drivers behind the wheel, though safety monitors sit in the front seat. Passengers pay a flat fee of $4.20 per ride.

Influencers invited by Tesla have shared videos of rides within a defined zone, with Musk emphasizing cautious operation—avoiding bad weather, difficult intersections, and minors. This rollout marks Tesla’s first public step toward commercializing self-driving taxis amid significant industry challenges.

Meanwhile, Texas Governor Greg Abbott signed a law effective 1 September requiring permits for autonomous vehicles operating without human drivers. The legislation empowers the Texas Department of Motor Vehicles to approve or revoke permits and mandates companies to provide emergency response information.

The law demands 'Level 4' autonomy for permits, meaning cars can drive without human intervention under specific conditions. It represents a more cautious regulatory stance compared to Texas’s previous anti-regulation approach, though less strict than California’s oversight.

Experts say Tesla’s Austin trial is an early milestone but cautioned that fully scaling robotaxi services could take years or decades. Tesla remains the world’s most valuable automaker, with much of its market value tied to promises around autonomous vehicles and robotics.

Tesla differs from competitors by relying solely on cameras for navigation, avoiding lidar and radar to reduce costs, a strategy Musk insists will be safe and effective. The rollout is closely watched following incidents involving rival companies’ autonomous vehicles and ongoing regulatory scrutiny.

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