Tesla rolls out Robotaxi pilot in Austin with $4.20 rides and bold plans for driverless domination

Tesla has officially launched its long-awaited Robotaxi service in Austin, Texas on June 22. The pilot program is currently invite-only and limited to select areas within the city.

The autonomous cab service is currently operating in pilot mode and is limited to a small, geofenced area within the city. Rides are available only to invited users, and each vehicle includes a Tesla safety operator in the front passenger seat.

The fleet currently consists of 10 to 20 modified Model Y vehicles, each equipped with Tesla’s Full Self-Driving (FSD) software and a safety monitor seated inside.

Unlike rival autonomous vehicle makers such as Alphabet’s Waymo, which uses radar and lidar sensors, Tesla relies entirely on a camera-based system.

To generate buzz, Tesla offered the first rides to digital creators and influencers.

Tesla’s Robotaxi service currently operates from 6 AM to midnight and avoids highways, airports, and adverse weather. Tesla plans to expand access via a dedicated app. The ride reportedly costs a flat $4.20.

Booking a Robotaxi ride will work much like any cab app. Once available to the public, users can download the app, create an account, enter their destination, and confirm the ride. Features include climate and music controls, seat adjustment, and live ride tracking — all via the app or car touchscreen.

During the ride, users can press “pull over,” “stop,” or “support” buttons on the display for assistance. In a test, it took about two minutes for a remote operator to connect with a passenger after pressing the support button.

Despite the smooth launch, Tesla still has a long road ahead. Musk has ambitious plans to scale to thousands of driverless cars in the coming months and eventually hit a million. But expansion to other states, especially California, may face tougher regulatory hurdles.

Meanwhile, rival Waymo already runs over 1,500 autonomous taxis in multiple U.S. cities and plans to expand further. Tesla’s launch may be late, but it’s certainly aiming to make a bold impact.