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Elon Musk has officially launched Tesla’s long-awaited Robotaxi service in Austin, Texas, with rides costing just a $4.20 flat fee. The launch began in a limited, geofenced area of South Austin, using around 10 Tesla Model Y vehicles.
For now, the service is invite-only, and each ride includes a human safety monitor in the front passenger seat to intervene if necessary. The $4.20 price tag—often seen as a playful nod by Musk—quickly grabbed headlines.
While some early users praised the smooth experience, videos surfaced showing the cars making traffic mistakes, like speeding and wrong-lane driving. This raised concerns among safety experts and regulators, especially since Tesla’s system relies only on cameras without radar or lidar. The U.S. government has already launched an investigation into the service’s safety.
Despite the controversy, Tesla plans to expand Robotaxi coverage in Austin soon and is eyeing the Bay Area for testing later this year. Musk also hinted at a future “Cybercab” specifically designed for the Robotaxi fleet. Although this launch marks a step forward, full driverless service without human monitors is still a work in progress.
