Tesla Launches Robotaxi Service in South Austin at $4.20 per Ride

Tesla’s Robotaxi service has officially begun its rollout in South Austin, with a flat fare of $4.20 per ride. The announcement was made directly by Elon Musk via a tweet, marking the company’s first real-world test of its fully autonomous vehicle technology. This technology relies solely on cameras and AI, unlike competitors such as Waymo, which use sensors and LiDAR systems.

In the lead-up to the launch, Musk had been teasing the rollout on social media for months. On Sunday, this anticipation turned into reality as social media posts and videos from the area showed Tesla-branded Model Y robotaxis navigating through the city. Tesla had sent early access invites to a select group of users, allowing them to download the Robotaxi app and hail rides starting that same day. Many of the first users were already known Tesla supporters on social media.

The service is starting on a small scale, with only 10 Model Y SUVs operating within a specific part of South Austin. Rides are available daily from 6:00 a.m. to midnight, though they may be suspended during bad weather. Each ride includes a Tesla employee in the front passenger seat, acting as a “safety monitor.” The role of this employee, whether they have control over the vehicle or access to a kill switch, has not been clarified by Tesla.

These vehicles are not the futuristic Cybercabs unveiled by Musk in October 2024. Instead, Tesla is using updated 2025 versions of its Model Y, equipped with a new version of its Full Self-Driving software, described by Musk as “unsupervised” autonomy. These vehicles are fully driverless but still include a safety monitor, a departure from the practices of companies like Waymo and the now-paused Cruise, which used human backup drivers.

Ed Niedermeyer, author of Ludicrous: The Unvarnished Story of Tesla Motors, confirmed the location of a Robotaxi depot near Oltorf Street. He observed branded robotaxis entering and exiting the parking lot in the days leading up to the launch. On Sunday morning, he spotted a Model Y robotaxi brake suddenly twice, once while crossing an intersection. In both cases, it was passing parked police cars, and there were no riders inside during these events.

Tesla has been restrictive about sharing details of the Robotaxi rollout, with most information coming from Musk’s posts or early users sharing footage. The company has not released key data and has actively tried to keep information from being made public. It allegedly blocked a public records request and tried to stop the City of Austin from giving documents to a media outlet. In April, Tesla’s senior counsel for infrastructure wrote a letter to the Texas Attorney General’s office claiming that some of the requested documents included confidential information, trade secrets, or business data shared with the Texas Department of Transportation.

On the safety side, in-cabin cameras will not be on during rides by default. Tesla says the camera will only activate if there’s an emergency or if support is requested. It may also turn on after a trip ends to verify the car’s readiness for its next ride. Tesla’s new info page also lists several rider rules, including bans on smoking, vaping, drinking, doing drugs, or using the vehicle for any criminal activity. The company says anyone who records and shares content that violates these rules can have their access suspended or terminated.

Following the launch, Ashok Elluswamy, Tesla’s head of Autopilot and self-driving, posted a photo from a Robotaxi launch party. Musk followed up on social media, congratulating the Tesla AI software and chip design teams on a successful launch, noting that it was the culmination of a decade of hard work.