Tesla (TSLA, Financial) is set to test its long-awaited Robotaxi service in Austin, Texas, starting June 22. However, the service faces regulatory hurdles as Texas Democratic legislators call for delaying the launch until new autonomous vehicle regulations are enacted in September. Public safety groups have also raised safety concerns.
Tesla CEO Elon Musk announced that the initial Robotaxi service will operate in designated safe areas of Austin, monitored remotely by an operations center. Initially, the service will use a limited number of Model Y vehicles, not the CyberCab unveiled last year. The service is invitation-only, with some influencers already invited to test it.
Musk, who initially predicted a 2020 launch for autonomous taxis, is optimistic about this year's launch, with plans to expand to Los Angeles and San Francisco. Analysts like Dan Ives from Wedbush believe Tesla's Robotaxi could spearhead an "autonomous driving golden age," potentially doubling Tesla's market value to over $2 trillion by the end of next year.
Despite being a leader in autonomous technology, Tesla is now catching up to Waymo, a subsidiary of Alphabet (GOOGL), which has completed 10 million miles with its commercial robotaxi fleet. Meanwhile, public safety advocates and organizations continue to challenge Tesla's full self-driving capabilities due to safety concerns linked to its software.
