Last week, a Tesla Model Y with the word “ROBOTAXI” scratched into its side and no one in the driver seat made a turn off Austin’s bustling South Congress Avenue. Another Tesla, described by autonomous vehicle experts as a “chase vehicle,” followed closely behind.
Tesla CEO Elon Musk commented on the clip, seemingly confirming that the lead car was one of roughly 10 vehicles comprising the company’s robotaxi fleet, expected to make their official debut sometime next week. If that does occur, it will come nearly nine years after Musk first pitched the idea of a “Tesla Network” in which Tesla owners could add their vehicles to an autonomous ridehail fleet. And it will also be made possible, in no small part, by the state of Texas’ laissez-faire, AV-friendly regulatory environment.
“In Texas, pretty much anyone can get a [autonomous vehicles] permit who shows up and does a few administrative things,” Carnegie Mellon professor and autonomous vehicle expert Phil Koopman tells The Verge. “If you show up and you tell the state you’re operating and you have insurance, you’re good to go. That’s about it.”
“If you show up and you tell the state you’re operating and you have insurance, you’re good to go.”
But that fast lane for AV innovation, while bringing millions in investments to the Lone Star State, has also raised concerns among some lawmakers and experts who say the approach may put safety in the backseat. Due to a bold carve-out in Texas law, local governments are powerless to set their own AV regulations. Tesla, with its tendency to play fast and loose with rules, only amplifies those concerns.
Last year, Austin Mayor Kirk Watson criticized the state’s move to preempt local oversight. And in an interview with The Verge, Democratic state Sen. Sarah Eckhardt says she’s “concerned about the rushed rollout of Tesla’s autonomous vehicle program.” Eckhardt, who recently sent a letter to the Central Texas legislative delegation outlining her concerns, says she will be working to ensure Tesla “slows their roll” ahead of the company’s proposed June 22nd launch.
How Texas became a hotbed for AVs
The law states that AVs operating in Texas must comply with all traffic laws and be equipped with a video recording device, and it holds the vehicle’s manufacturer responsible when an AV breaks the law. But what’s more notable is what the legislation doesn’t say. As of now, there are no licensing or registration requirements for verifying the capabilities of autonomous vehicles, and no set standards for when a carmaker can remove safety drivers. Crucially, the law also states that no local government can enact regulations that supersede those of the state.
“Simply put, cities in Texas cannot regulate autonomous vehicles,” Richard Mendoza, the interim director of Austin’s Transportation and Public Works Department, wrote in a 2023 memo.
The legislation’s origins, according to lawmakers speaking with The Texas Tribune, dates to the early 2010s. At the time, there weren’t clear rules regarding AVs. Automakers and AV operators, through stakeholder meetings, wanted to encourage the passage of a law that removed the regulatory uncertainty and also didn’t overburden the industry with what they viewed as overbearing permitting requirements. As for the provision prohibiting cities from setting their own rules, University of Texas professor of transportation engineering Kara Kockelman says it helps avoid a patchwork of potentially conflicting laws that might make it difficult for AVs to travel between cities. But it can also create headaches for local officials who want more targeted regulations tailored to the specific needs or preferences of their city or region.
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