Tesla's robotaxi service goes live after years of hype

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, who predicted Trump's administration would clear roadblocks for Tesla and pivot from the recent "soap opera."

Business-friendly Texas

One of the robotaxi's self-described first users was Tesla fan Herbert Ong, who livestreamed his ride Sunday in a red vehicle that included a person in the passenger seat monitoring the trip for operational safety.

The unveiling in the Texas state capital comes amid questions about how Tesla will try to overcome criticism of Musk's activities for Trump.

Tesla saw profits plunge 71 percent in the first quarter following poor sales in several markets.

In picking Austin for the debut of the autonomous vehicle (AV) service, Musk is opting for a US state known for its business-friendly approach to regulation.

"Texas law allows for AV testing and operations on Texas roadways as long as they meet the same safety and insurance requirements as every other vehicle on the road," the Texas Department of Transportation told AFP.

The Texas legislature this year passed a bill requiring prior authorization from the state's Department of Motor Vehicles before companies can operate on a public street without human drivers, a group of Democratic lawmakers said in a June 18 letter to Tesla.

Citing the enhanced system, the lawmakers asked Tesla to delay testing until after the law takes effect on September 1.

The lawmakers asked for "detailed information demonstrating that Tesla will be compliant with the new law" should the company choose to proceed.

Also read: Elon Musk's X files lawsuit against New York social media transparency regulations

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 6:00 am 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 US 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.