Tesla has quietly launched its long-awaited robotaxi service, starting with a limited rollout in Austin, Texas. A small group of hand-picked riders, including influencers and investors, were the first to try it.

Each ride was monitored by a Tesla employee inside the vehicle. Early footage showed Model Y cars driving short routes, handling traffic, and parking without a human driver. Some glitches occurred. For example, a vehicle stopped in the middle of the road after a pull-over test.

The rides are currently priced at $4.20 per trip and operate daily between 6 AM and midnight in a restricted part of Austin—not including the airport. Service may be unavailable during bad weather.

Despite the modest start, this marks a major step for Elon Musk’s vision of a self-driving future. Tesla did not hold a launch event or issue major announcements. Instead, they relied on social media buzz and livestreams from early riders.

Tesla is initially using just 10–20 vehicles. They aim to prove they can handle real-world driving safely. This is an area where other companies like GM’s Cruise and Uber have struggled. Past accidents have led these companies to shutdowns or exits from the self-driving business.

Investors view robotaxis as key to Tesla’s future, particularly given the company’s slowing sales and a 20% decline in its stock this year. Analysts estimate that self-driving tech could account for over half of Tesla’s future valuation. Musk has promised to expand the service to more US cities soon. This will put Tesla in competition with rivals like Waymo and Amazon’s Zoox, which is already testing in Austin.

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