Elon Musk: Confident Tesla Robotaxi will be fully autonomous in Austin by end of June.
AinvestTuesday, May 20, 2025 10:50 pm ET

Elon Musk: Confident Tesla Robotaxi will be fully autonomous in Austin by end of June.
Austin, Texas - Elon Musk has expressed confidence that Tesla's robotaxi service will be fully autonomous in Austin by the end of June, according to a recent interview with CNBC. The announcement comes as the National Highway Traffic Safety Administration (NHTSA) has raised safety concerns and issued a letter to Tesla, questioning the company's automated driving specifications [1].Tesla plans to initially deploy around 10 Model Y vehicles equipped with a forthcoming version of Full Self-Driving (FSD) technology, known as FSD Unsupervised. These vehicles will operate without human safety drivers, with Tesla employees monitoring the fleet remotely. If the launch goes well, the company aims to expand the service to thousands of vehicles in Austin and subsequently to other major cities like Los Angeles and San Francisco [1].
The NHTSA has asked Tesla to address several safety concerns, including interactions with pedestrians and adjustments to changing weather conditions. Failure to respond promptly could result in significant fines, up to $139,356,994 [1]. The agency's letter is a significant step in the ongoing regulatory scrutiny of autonomous vehicles, which has been a topic of debate in the industry [1].
In a separate development, the NHTSA has amended its rules relating to autonomous vehicle safety. The new guidelines grant the same exemption from Federal Motor Vehicle Safety Standards (FMVSS) compliance to domestically manufactured autonomous vehicle models, making it easier for companies like Tesla to deploy their robotaxi services [2]. The new policy focuses on robotaxis for ride-hailing services and does not apply to automated driving systems used in privately owned passenger vehicles.
Elon Musk has been vocal about his plans to start a ride-hailing service in Austin using Tesla Model Y SUVs with FSD Unsupervised software. The service is expected to be a test run with limited availability, but Musk remains optimistic about the potential for fully autonomous vehicles in the future [1].
The competition in the robotaxi market is intense, with companies like Waymo and Zoox already operating in various cities. Waymo, through its partnership with Uber, offers a public fully autonomous ride-hailing service, while Zoox has been testing its fleet in Austin and other cities. Cruise, previously owned by General Motors, suspended its driverless operations in 2023 after facing issues with its autonomous cars [1].
Despite the challenges and regulatory hurdles, Tesla's robotaxi service in Austin represents a significant milestone in the company's push towards fully autonomous vehicles. The success of this test run could pave the way for broader adoption of autonomous ride-hailing services across the United States.
References:
[1] https://www.fox7austin.com/news/tesla-robotaxis-elon-musk-austin-texas
[2] https://cleantechnica.com/2025/05/20/nhtsa-adjusts-autonomous-vehicle-rules-ahead-of-tesla-robotaxi-rollout/

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