Tesla Launches Self-Driving (Well, Almost) Taxis in Austin: No Wow Effect
On June 22, Tesla Inc. robotaxis began operating in Austin, but only for invited passengers and in cars monitored by a human observer in the front seat, the publication writes. Austin american-statesman.
Photo: Bjorn Wylezich | Dreamstime.com
CEO Elon Musk had previously called the June 22 robotaxi launch “tentative,” but said there would be “nobody in the driver’s seat.” That turned out to be true, but passengers were accompanied by a Tesla employee in the front passenger seat to monitor the ride and intervene if necessary.
The limited launch comes after Gov. Greg Abbott signed a law on June 20 requiring state approval for autonomous vehicles to operate. The law goes into effect Sept. 1, but its passage signals that Texas lawmakers from both parties want the self-driving car industry to grow with at least some government oversight.
On the subject: Driverless robotaxis launched in San Francisco: anyone can order a ride
Pointing to that law, a group of Austin-area lawmakers last week asked Tesla to delay the launch at least until the company certifies it is in compliance with the upcoming legislation. In a letter sent June 18, seven Democrats said they would prefer the company delay the launch of its ride-hailing service until Sept. 1.
In addition to the list of requirements for obtaining a permit, operators are required to provide an Emergency Services Interaction Plan, which must detail how police, firefighters and paramedics should interact with the vehicle and how to contact fleet support in an emergency.
It was unclear last week whether Tesla had met any of those demands.
Test 22 June
To test the robotaxi, the company sent out invitations to a group of Tesla internet influencers and others on June 22 to an event that Tesla said involved 10 to 20 Model Y vehicles operating in a limited area.
“As an early access participant, you can be among the first to use the new Robotaxi app and take a ride within our Austin geofence,” Tesla’s invitations read. “With this exclusive early access, you will be able to provide valuable feedback on our Robotaxi service.”
Information sent with the invitations said that front-seat safety observers would be required to adhere to the same rules as drivers of Teslas with Full Self-Driving, meaning a camera in the cabin would monitor the observer's eyes to make sure they are looking at the road and alert them if necessary.
This month, the company tested Model Y robotaxis with human supervision in the Montopolis and Travis Heights neighborhoods in preparation for a full rollout of autonomous service across a larger area of the city. In those tests, a human supervisor sat in the driver's seat.
“We want to go slowly, deliberately,” Musk told CNBC last month. “We could start with 1000 [robotaxis] or 10 on day one, but I don’t think that would be smart. So we’ll start with probably 000 a week, then we’ll go to 10, 20, 30.”
That's a far cry from his 2019 promise that self-driving robotaxis would hit the road "next year." A year later, Musk again promised a launch next year, but that didn't happen.
Last January, he assured: “Next year we will definitely have more than a million robotaxis.”
High rates
A million may still be a long way off, but Tesla could begin expanding the service this year if the Austin demo is successful. Musk has said San Antonio, San Francisco, and Los Angeles are next in line.
While Musk has been making “next year” promises in recent years, rival Waymo has been launching self-driving taxis in Austin, Los Angeles, San Diego and other cities using different technology that has allowed it to get to market faster. Waymo recently completed its 10 millionth paid ride and has begun testing in San Antonio.
Several other companies are already operating or preparing to launch autonomous taxis in Austin.
Musk has made the robotaxi program a priority for Tesla, and failure could cause serious damage to the company's stock price, which has already fallen 20% this year.
Boycotts and protests over Musk’s political rhetoric have hurt Tesla’s sales in the U.S. and abroad. Rival electric carmakers have gained market share with new competitive models. Investors are on edge after Musk’s market cap dropped by $150 billion in a social media spat with President Donald Trump, whose administration controls federal auto regulators that could make it difficult for robotaxis to launch. Shares have partially recovered after Musk said he regretted some of his comments about his opposition to Trump’s budget.
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"How quickly can he expand his fleet?" asked Garrett Nelson, an analyst at CFRA. "We're talking about a dozen vehicles at the start. That's very small."
Morningstar's Seth Goldstein said Musk is behaving in a traditional manner: promising to do too much too quickly.
"When any Austinite can download an app and use a robotaxi, that's when it's a success, but I don't think that will happen before 2028," he concluded.
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