The wait is finally over. After years of promises from its eccentric CEO, Tesla debuted its highly anticipated robotaxi service on June 22 in Austin, Texas, a launch that is central to the company’s entire future.
This isn’t just about a new feature; it’s the cornerstone of Elon Musk’s narrative that Tesla is not merely a car company but a world-changing AI and robotics powerhouse. As the automaker faces fierce competition from Chinese rivals like BYD, the success or failure of its autonomous vision could define its next chapter.
“The @Tesla_AI robotaxi launch begins in Austin this afternoon with customers paying a $4.20 flat fee!” Musk announced on X, followed by posts congratulating his teams.
The @Tesla_AI robotaxi launch begins in Austin this afternoon with customers paying a $4.20 flat fee! — Elon Musk (@elonmusk) June 22, 2025
The service kicked off with a small fleet of 10 to 20 Model Y SUVs navigating public roads. In a demo posted by Tesla, users within a specific “geofenced” area in south Austin can hail a ride through a dedicated app. The concept is simple: a taxi with no human driver.
However, the reality of this “limited launch” is more cautious. The first rides were given to a select group of influencers and fans, and videos posted by the company show a “safety monitor” sitting in the passenger seat, a detail at odds with the fully autonomous dream.
Musk himself admitted the company is being “super paranoid about safety,” a sentiment that seems justified given a new Texas law requiring state permits for self-driving vehicles, set to take effect on September 1.
Tentatively, June 22. We are being super paranoid about safety, so the date could shift. First Tesla that drives itself from factory end of line all the way to a customer house is June 28. — Elon Musk (@elonmusk) June 11, 2025
At its core, the robotaxi is a vehicle powered by the most advanced version of Tesla’s Full Self-Driving (FSD) system and a suite of eight cameras. But unlike competitors, Tesla claims its system doesn’t need expensive, pre-mapped service areas. “It just works,” the company posted on X, promising future expansion to cities like San Francisco and Los Angeles.
For Musk, this is the culmination of a long-standing promise. He envisions a future fleet, including a new “Cybercab” and “Robovan” with no steering wheels or pedals, that could boost Tesla’s market value by an astonishing $5 trillion to $10 trillion. On June 20, Tesla was worth $1.04 trillion, the 11th most valuable company globally. By comparison, Microsoft ($3.54T), Nvidia ($3.50T), and Apple ($3.00T) top the leaderboard.
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