Tesla started its first robot taxi service on June 22, 2025, in Austin, Texas. This marks the company’s first real-world test of self-driving cars that pick up passengers.
The service uses 10 to 20 Tesla Model Y SUVs equipped with Full Self-Driving software. These cars operate without human drivers in a small area of South Austin.
Each ride costs $4.20 during this test phase. The service runs from 6 AM to midnight when weather conditions are good. Only passengers 18 years or older can use the service.
For safety, a Tesla employee sits in the front passenger seat during every ride. Remote drivers also watch the cars and can take control if needed.
The robot taxis only work in a fenced-off area of the city. This limited zone helps Tesla control the environment and test the technology safely.
Tesla CEO Elon Musk first promised robot taxis in 2019. The company has delayed the launch several times since then. This Austin pilot is a careful, small-scale test before expanding to other cities.
The rides are currently by invitation only. Tesla is offering them to employees and selected guests, not the general public yet.
Federal safety officials are reviewing Tesla’s plans. The National Highway Traffic Safety Administration asked detailed questions about how the cars perform in bad weather and low visibility.
Tesla plans to expand the service to Los Angeles, San Francisco, and other California cities later in 2025.
The company is also building a new vehicle called the CyberCab. This car will have no steering wheel and is designed specifically as a robot taxi. Production will start in 2026.
Tesla faces tough competition from Waymo, which has been running paid driverless rides in multiple cities for years. Other companies are also testing similar services.
The Austin launch represents a major step toward Tesla’s vision of widespread robot taxi networks. The company believes this technology could make ride-sharing cheaper and reduce traffic in cities.
However, safety concerns and regulatory approval remain major challenges as Tesla works to prove its self-driving technology is ready for public use.
