Tesla launches a limited robotaxi service in Austin on a landmark day for autonomous ambitions

Tesla (NASDAQ:TSLA) launched a limited version of its robotaxi service in Austin, Texas on Sunday to mark a significant milestone in the company’s goal to become the autonomous driving leader. Social media accounts have already posted pictures of the self-driving vehicles out in the wild.

Notably, the initial rollout is highly controlled and invite-only, with access granted primarily to select Tesla (NASDAQ:TSLA) enthusiasts, investors, and social media influencers.

The robotaxi service will use Tesla (TSLA) Model Y vehicles equipped with an advanced version of the company’s Full Self-Driving software. The vehicles feature a camera-based sensor suite empowered by AI, which is different from many competitors that use additional sensors like Lidar and radar.

Despite some earlier promises of fully driverless vehicles, Tesla (TSLA) has opted to include a safety monitor or Tesla (TSLA) employee in the front passenger seat for the initial rollout. The driver’s seat will remain unoccupied during rides.

CEO Elon Musk previously told reporters that there may be fewer than a dozen cars in Austin on Sunday and that the vehicles will stick to specific geo-fenced neighborhoods as the company displays an abundance of caution.

Just ahead of the launch, Texas Governor Greg Abbott inked legislation requiring a permit to operate self-driving vehicles. The governor’s action places the automaker in the position of choosing whether to proceed with a rollout it might have to terminate before September 1. The new law requires autonomous-vehicle operators to get approval from the Texas Department of Motor Vehicles before operating on public streets without a human driver, and gives state authorities the power to revoke permits if they deem a driverless vehicle endangers the public.

Last week, Wedbush Securities analyst Dan Ives reiterated that the firm estimated the AI and autonomous opportunity is worth at least $1 trillion alone for Tesla (TSLA).

“We fully expect under a Trump White House, these key initiatives will now get fast tracked as the federal regulatory spiderweb that Musk & Co. have encountered over the past few years around FSD/autonomous clears significantly under Trump. The BFF/frenemy situation with Musk and Trump has created a soap opera on this front, but ultimately Trump wants the US to stay ahead of China in this AI Arms Race and autonomous is a key factor in who wins AI….with Tesla playing a major role on robotaxis,” he highlighted.

Shares of Tesla (TSLA) were down 6.4% over the last six weeks ahead of the robotaxi launch.