Tesla Robotaxi Launches in Austin: Driverless Ride-Hailing Service Begins Limited Rollout with Model Y Fleet

After years of speculation and development, Tesla's autonomous ride-hailing service is finally live. Today, a small fleet of driverless Model Y electric vehicles hit the streets of Austin, Texas, marking a major step in Tesla’s Robotaxi ambitions.

The launch is part of an invite-only Early Access Program, allowing a select group of users to summon a ride through a newly added feature in the Tesla app. Riders can set their destinations and enjoy an almost fully autonomous experience. However, for safety and regulatory reasons, each vehicle currently includes a "Tesla Safety Monitor" in the front passenger seat—providing human oversight as the system interacts with real-world traffic.

The service is currently limited to a geofenced area in south-central Austin, covering neighborhoods like Zilker, South Lamar, Lakeshore, and East Riverside-Oltorf. Operating hours are from 6 a.m. to midnight, and the Robotaxis are not yet servicing airport trips. Tesla is using this restricted launch to gather data and improve system performance in a controlled environment.

Tesla's initial fleet reportedly includes around 10 specially marked Model Y EVs, making it a modest yet meaningful rollout. As expected from Elon Musk, the ride fare is set at a symbolic $4.20 flat rate, referencing his favorite meme culture while keeping prices extremely competitive for early users.

Inside the Robotaxi, passengers can adjust climate settings, audio, and access support via a rear touchscreen or their smartphone. Privacy protections are also in place—the cabin camera and microphone are disabled by default, but can be enabled if the passenger needs to contact support.

This launch coincides with upcoming new autonomous vehicle regulations in Texas. Signed into law by Governor Greg Abbott, the legislation takes effect on September 1, and requires AV operators like Tesla to:

Secure operational permits from the Texas DMV

Adhere to state traffic laws and federal safety standards

Submit response protocols for accidents involving first responders

Install onboard recording and safe-stop capabilities

Register, insure, and title each autonomous vehicle in the state

Though Tesla’s use of a safety monitor may currently bypass some regulatory definitions of "driverless," the company must still comply with the law to fully scale its Robotaxi network across Texas and beyond.

As this invite-only program rolls out, it provides Tesla with a safe environment to refine its autonomous systems before opening to the wider public. When that happens, Tesla will face its greatest test yet: navigating the unpredictability of everyday city driving without human oversight, all under strict state scrutiny.v