Austin In Talks With Tesla For Potential Cybercab Fleet Debut Next Year

Tesla reportedly is in early discussions with the city of Austin regarding its autonomous driving technology, hoping to launch its first driverless fleet on the city's roads as early as next year.

According to emails obtained by the media, an employee of Tesla has been communicating with Austin's autonomous vehicle task force since at least May to determine if the Texas capital could become the first city to adopt Tesla's driverless fleet.

In an email from November, the employee stated that Tesla is still looking for a city to deploy in Texas, and Austin is obviously on the roadmap, but they have not yet decided where to deploy first because Musk's EV company has many options.

Reports indicate that the Tesla employee expressed interest in joining Austin's autonomous vehicle task force. The employee stated that the company's goal is to meet Austin's safety expectations and train first responders on how to interact with the vehicles.

It is understood that Austin's autonomous vehicle task force was established last year, primarily composed of the city's transportation department and first responders. Their mission is to collaborate with autonomous vehicle companies and residents, gather feedback and accident data, and develop safety training and procedures.

The successful launch of autonomous vehicles is particularly important for Tesla, as Elon Musk is increasingly betting on the company's future in this field. However, the required approvals may still take several years, and many competitors have already deployed such vehicles in some cities.

At a launch event in October, Tesla unveiled a prototype vehicle specifically for the Robotaxi business, the Cybercab, featuring gull-wing doors, no steering wheel or pedals, and relying on Tesla's Full Self-Driving (FSD) software, expected to go into production in 2026.

At that time, Musk also revealed that Tesla would develop an official app specifically for ride-hailing services. However, the event raised many new questions for investors, including the safety of the controversial FSD software, leading to a more than 10% drop in the company's stock price the next day.

Musk stated during an earnings call in October that Tesla has been testing ride-sharing technology with Tesla employees in the Bay Area of California but with safety drivers on board. The company may also adopt a similar approach in Texas.

Regulatory hurdles for Tesla's autonomous vehicles in Texas may be much less, with Austin Mayor Kirk Watson stating that while autonomous driving technology has a bright future, it is not yet mature.