Tesla’s Robotaxi Service Rolls Out in Austin with Caution

Tesla Inc.’s ambitious robotaxi service is finally being put to the test in Austin, where a small fleet of Model Y vehicles now offer paid rides to select customers. The rollout comes as the company faces scrutiny over its claims of autonomous vehicle capabilities and CEO Elon Musk’s history of overpromising on its technology.

While Tesla pitches its existing vehicles as having the necessary hardware for robotaxis, the reality is that the service operates in a limited area with strict boundaries. Invite-only customers are among those who can experience the service, which features a “safety monitor” in each vehicle to ensure passenger safety. This cautious approach is a stark contrast to Tesla’s earlier boundless promises of autonomous driving capabilities.

As Tesla’s $800 billion valuation hangs in the balance, the success or failure of its robotaxi service will have significant implications for the company’s future prospects. With a trillion-dollar valuation at stake, Tesla must deliver on its autonomy promises and prove that its technology can handle complex scenarios.

Source: https://www.bloomberg.com/opinion/articles/2025-06-27/tesla-s-800-billion-robotaxi-dream-is-finally-facing-reality