Tesla’s Robotaxis to Hit Austin Streets by June's End, Musk Says

Tesla is set to introduce its first fleet of autonomous robotaxis in Austin, Texas, by the end of June, as CEO Elon Musk stated in a detailed interview with CNBC on Tuesday. The initial rollout is scheduled to begin with approximately 10 vehicles, with the possibility of swift expansion to thousands, depending on a successful launch free from safety incidents.

Musk emphasized the importance of starting with a limited quantity to ensure smooth operations before considering any expansion, speaking from Tesla’s headquarters in Austin.

A new pilot program is on the horizon, showcasing Tesla's Model Y vehicles. These cars will be equipped with an upcoming version of the Full Self-Driving software, known as FSD Unsupervised. The cars are poised to operate independently, with Tesla staff monitoring the fleet remotely. The initial rollout of robotaxis will feature geofencing, limiting their operation to designated zones within Austin.

Tesla is set to broaden its service offerings in San Francisco and Los Angeles, depending on the outcomes of its existing initiatives. Musk emphasized that Tesla’s camera-based, AI-driven system presents a more scalable and cost-effective alternative when compared to competitors like Alphabet’s Waymo, which relies on sensors such as lidar.

Tesla has officially launched its robotaxi initiative amid considerable challenges confronting the company. In the first quarter of 2025, the automaker reported a notable 20% decrease in automotive revenue. 

Musk has suggested that the decline is associated with temporary factory retooling as preparations are underway for launching a redesigned Model Y. He has dismissed concerns that his political ties, including his advisory role in the Trump administration, are impacting Tesla’s brand image.

The CEO has reaffirmed his commitment to leading Tesla for at least five more years, despite facing ongoing controversy and a challenging competitive landscape. 

Bloomberg reports that Musk remains the world's richest person, with a staggering net worth of $376 billion.