Sunita Somvanshi
Tesla plans to launch its robotaxi service in Austin, Texas, on June 12, according to Bloomberg reports. The initial rollout will be limited to about 10 Model Y SUVs with invited riders.
CEO Elon Musk confirmed on May 29 that Tesla has already begun testing self-driving Model Y vehicles on Austin public streets “with no incidents.” A Tesla engineer reportedly sat in the passenger seat while the car drove autonomously without remote operation.
“For the past several days, Tesla has been testing self-driving Model Y cars (no one in driver’s seat) on Austin public streets with no incidents. A month ahead of schedule,” Musk wrote on X (formerly Twitter).
Musk added that people should be able to “fly to Austin and hail a Robotaxi by the end of June,” suggesting a rapid expansion beyond the initial deployment.
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In a related development, Musk announced that Tesla vehicles will soon deliver themselves from factory to customers without human drivers. “Next month, first self-delivery from factory to customer,” he stated, potentially eliminating the need for showroom pickups.
The robotaxi announcement has already impacted the ride-hailing industry. Uber’s stock dropped nearly 5% following the news, though it remains up about 40% in 2025 and near record highs.
Wedbush Securities identified Tesla’s robotaxi as a “long-term competitive threat” to Uber’s business model. However, BMO Capital maintained an “outperform” rating on Uber, noting the company’s international expansion and autonomous vehicle partnerships with Waymo and WeRide.
Safety concerns remain a significant hurdle. A May 2025 Electric Vehicle Intelligence Report revealed substantial public skepticism toward autonomous driving technology. The report found 60% of consumers consider Tesla’s Full Self-Driving (FSD) technology “unsafe,” 77% are unwilling to use it, and 48% believe it should be illegal.
Critics have questioned whether Tesla’s brief testing period is sufficient. Traditional autonomous vehicle testing typically involves “months of testing and hundreds of thousands of miles” before public launch. Texas has “relatively relaxed rules around autonomous driving” compared to states like California.
Tesla’s approach differs from competitors like Waymo, which uses additional sensors such as LiDAR and radar along with cameras. Tesla relies solely on cameras and artificial intelligence to analyze road conditions in real-time.
Waymo, owned by Google’s parent company Alphabet, has operated in Austin since March 2025 after several months of testing. Their electric Jaguar I-PACE vehicles serve customers across 37 square miles throughout Austin.
Morgan Stanley analyst Adam Jonas advised investors to “keep expectations well contained” regarding the June 12 robotaxi launch, emphasizing the need for more detailed information before getting excited.
Tesla still needs approval from the National Highway Traffic Safety Administration before officially launching the service.
