Tesla launches long-discussed robotaxi service

Tesla began offering robotaxi services Sunday in the U.S. city of Austin, Texas, an initial step that Elon Musk's backers believe could lead to the company's next growth wave.

"Super congratulations to the @Tesla_AI software & chip design teams on a successful @Robotaxi launch!!" Musk posted on the X platform that he owns.

"Culmination of a decade of hard work."

The kickoff will employ the Model Y sport utility vehicle rather than Tesla's much-touted Cybercab, which is still under development.

The long-awaited launch follows the dramatic meltdown earlier this month in relations between the U.S. president and Musk, which saw a cascade of bitter attacks from both men.

Since then, Musk has publicly expressed regret for some of his statements, while his company's Texas operation has readied the Austin push – part of a major drive on autonomous technology and artificial intelligence that Tesla believes will yield huge profits.

Wedbush analyst Daniel Ives said autonomous technology could be a catalyst for potentially $1 trillion or more in additional market value.

"There are countless skeptics of the Tesla robotaxi vision with many bears thinking this day would never come," said Ives.

Starting slow

Musk had initially planned the launch for June 12, before pushing back, saying he was being "super paranoid" about safety.

"We want to deliberately take it slow," Musk said May 20 on CNBC, telling the network that Tesla would probably only operate 10 autonomous vehicles the first week.

But that number will rise to perhaps 1,000 "within a few months," Musk added. "And then we will expand to other cities... San Francisco, Los Angeles, San Antonio."

The service will be offered from 6 a.m. until midnight and will be available to "early access" users on an invitation-only basis in a geofenced area, Sawyer Merritt, who owns a Tesla, said Friday on X.

He added that the company had given him permission to release the information.

Musk last fall unveiled the Cybercab, which has no steering wheel or pedals. Its production is not expected to begin until 2026.

Tesla's robotaxi launch comes well after Waymo's offering of commercial robotaxi service.

The U.S. National Highway Traffic Safety Administration (NHTSA) in October 2024 opened a probe into Tesla's Full Self-Driving software after receiving four reports of crashes.

Last month the agency asked Tesla for additional information on its technology in light of the Austin launch.

But the NHTSA told AFP it does not "pre-approve" new technologies.

"Rather, manufacturers certify that each vehicle meets NHTSA's rigorous safety standards," it said.