Tesla Launches Robotaxi Pilot With 10 Vehicles In Austin Amid Safety Investigations

Tesla is set to launch its long-anticipated Robotaxi pilot in Austin, Texas, around June 12, featuring about 10 Tesla Model Ys equipped with full self-driving (FSD) software, though these vehicles will be monitored by human operators who can intervene remotely. This launch marks a shift from Elon Musk’s earlier promises of fully autonomous robotaxis without human oversight, reflecting a more cautious approach amid ongoing regulatory scrutiny and safety investigations by the Justice Department and National Highway Traffic Safety Administration. The initial Robotaxi service will be a tightly controlled test, with invited passengers and teleoperators ensuring safety, while Tesla continues to develop its purpose-built Cybercab without steering wheels or pedals. The rollout is considered a major inflection point for Tesla’s valuation, with some analysts projecting the autonomous business opportunity to be worth over $1 trillion, potentially driving Tesla’s market cap to $2 trillion by 2026. However, concerns remain about the aggressive timeline and regulatory risks, especially following recent tensions and a public feud between Musk and President Donald Trump, which have created investor uncertainty despite signs of easing hostilities. Competitors like Waymo already operate fully autonomous services in multiple U.S. cities, highlighting Tesla’s challenge to catch up in the autonomous driving race.