A Tesla robotaxi drives on the street along South Congress Avenue in Austin, Texas, on June 22, 2025Tesla was contacted by the National Highway Traffic Safety Administration on Monday after videos posted on social media showed the company's robotaxis driving in a chaotic manner on public roads in Austin, Texas.Elon Musk's electric vehicle maker debuted autonomous trips in Austin on Sunday, opening the service to a limited number of riders by invitation only.In videos shared widely on social media, one Tesla ...

Core Insights - Tesla is set to launch its robotaxi service in Austin in June, following years of delays and amidst a competitive landscape where some competitors like GM's Cruise have exited the market [1][3] - Elon Musk emphasizes Tesla's unique approach to autonomy, relying on cameras and AI, which could allow for quicker and more cost-effective scaling of robotaxis compared to competitors [2][3] Robotaxi Launch Details - The initial rollout will be a "pilot" launch with approximately 10 robotaxis in the first week, potentially scaling to 1,000 within a few months [8][9] - The launch will be "invite only" and will include tele-operators to ensure safety, differing from competitors who use remote human workers for guidance [4][5] Vehicle Specifications - The first robotaxis will likely be Model Ys, which will become autonomous through a software update, with no changes to the physical vehicle [12] - Tesla's Cybercab, a separate product, is expected to begin volume production in 2026, with prototypes currently being developed [17][18] Business Model - Musk describes the robotaxi business model as a mix of Airbnb and Uber, allowing Tesla owners to earn money by adding their cars to the autonomous fleet [14][15] - Owners could potentially earn around $30,000 a year from the service, making it financially attractive [14] Ordering Process - A ride-hailing mobile app is in development, allowing users to request robotaxi services and adjust settings before pickup [16]