Tesla will begin testing its long-awaited robotaxi service on schedule in Austin, Texas, by the end of June, CEO Elon Musk announced on Tuesday. The launch comes as the company faces ongoing safety concerns from a U.S. regulator. According to Musk, Tesla will initially deploy around 10 self-driving vehicles in select parts of the city, gradually expanding the fleet to approximately 1,000 cars over the following months.
“We’re not rolling it out across all of Austin—just in the safest areas,” Musk told CNBC. This pilot program is critical for Tesla, especially as the company sees declining global sales amid increasing competition and criticism of Musk’s political activities, including his support for former President Donald Trump.
Musk stated he plans to scale back his involvement in Trump-related initiatives and shift focus back to Tesla. “My rough plan for the White House is to be there for a couple of days every few weeks, and to help where I can,” he said.
Tesla’s future strategy is now centered on the success of its robotaxi initiative and the development of its Optimus humanoid robots, moving away from previous plans for a more affordable electric vehicle platform. Musk emphasized the importance of these efforts, saying, “The only things that matter in the long term are autonomy and Optimus.”
Despite the promise of self-driving technology, commercializing autonomous vehicles remains challenging due to strict regulations and high development costs. Several companies have exited the space, while others, like Alphabet’s Waymo, continue to face intense scrutiny.
Tesla Robotaxi faces hurdles
The National Highway Traffic Safety Administration (NHTSA) is currently investigating crashes involving Tesla’s Full Self-Driving (FSD) software under low-visibility conditions. The agency recently requested details from Tesla regarding the robotaxi service to better understand how the vehicles would operate in adverse weather.
Musk also revealed that Tesla is in discussions with major automakers about licensing its FSD software, which will serve as the foundation for the robotaxi fleet. The robotaxi project has drawn increased media attention in recent weeks, particularly after the U.S. Patent and Trademark Office (USPTO) denied Tesla’s attempt to trademark the name “Robotaxi,” calling it too generic. It remains unclear whether Tesla will continue using the name despite the trademark rejection.
With inputs from Reuters
