AUSTIN, June 22 (Reuters) – Tesla CEO Elon Musk announced Sunday that the company would begin offering limited robotaxi rides in Austin for a flat fee of $4.20, marking a cautious step toward commercializing autonomous vehicles. The launch follows sightings of driverless Tesla Model Y vehicles navigating Austin’s South Congress district earlier in the day, with passengers seated but no one behind the wheel.
Regulatory Backdrop
The rollout coincides with Texas Governor Greg Abbott’s signing of a bill on Friday imposing new regulations on autonomous vehicles, though the law will not take effect until September 1. The legislation requires companies to obtain state approval before operating driverless vehicles on public roads and grants authorities the power to revoke permits if safety concerns arise.
The bipartisan move signals Texas’ shift from its historically hands-off approach to autonomous vehicle regulation. A 2017 state law had explicitly barred local governments from imposing restrictions on self-driving cars. However, some Democratic lawmakers recently urged Tesla to delay its pilot, citing the pending regulations.
Tesla’s Cautious Approach
Tesla has invited a select group of influencers to participate in the small-scale trial, which will involve 10 to 20 Model Y vehicles operating in a restricted zone. The company plans to deploy "safety monitors" in the front passenger seat, though their level of control remains unclear.
Musk emphasized a "super paranoid" focus on safety, with the pilot avoiding adverse weather, complex intersections, and passengers under 18. The CEO acknowledged potential delays if safety concerns emerge.
Industry Context
Tesla’s camera-only autonomous system diverges from competitors like Waymo and Cruise, which use lidar and radar. The launch also comes amid heightened scrutiny of the robotaxi sector following high-profile setbacks, including Cruise’s suspension after a pedestrian accident.
Analysts note that Tesla’s market valuation hinges heavily on its ability to deliver fully autonomous technology. Musk’s latest announcement reignites a long-standing promise—self-driving Teslas have been a recurring pledge for over a decade.
Public and Investor Reaction
Enthusiasts like Omar Qazi (@WholeMarsBlog), among the invited testers, celebrated the milestone: "Wow. We are going to ride in driverless Teslas in just a few days. On public roads."
Tesla and Governor Abbott’s office declined to comment further.
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