Tesla (TSLA, Financial) plans to launch its much-anticipated Robotaxi service in Austin, Texas. This move aligns with Elon Musk's promise to initiate the service by the end of June. Recently, Tesla conducted its first fully autonomous test on public roads in Austin, with a Model Y SUV driving without a human driver, monitored only by a Tesla engineer in the passenger seat. These tests have expanded to include employee transport, gathering valuable data for the public rollout.
Initially, Tesla will deploy about 10 Robotaxis, with plans to increase this number to 1,000 in the coming months. The choice of Austin is strategic due to its regulatory environment, which is favorable for autonomous vehicles. Texas, home to Tesla's headquarters, allows autonomous vehicles with camera systems and insurance to operate without direct local government oversight. Previously, companies like Waymo have also operated in this area.
While Tesla's Robotaxi service is poised to become a core business pillar, challenges remain, particularly in technology reliability and user trust. Despite these potential hurdles, the market response has been calm, with Tesla's stock rising 1.1% recently, although it remains down 12% year-to-date. Investors are keenly observing the execution of this ambitious plan to assess its impact on Tesla's long-term business model.
