The launch will begin with approximately 10 vehicles and could scale rapidly if the pilot proceeds smoothly, Musk said during an interview Tuesday at Tesla’s Austin headquarters.
The launch will begin with approximately 10 vehicles and could scale rapidly if the pilot proceeds smoothly, Musk said during an interview Tuesday at Tesla’s Austin headquarters.
The robotaxis, based on Tesla’s Model Y and running a new version of its Full Self-Driving software called “FSD Unsupervised,” will operate without human safety drivers. Instead, Tesla employees will monitor the vehicles remotely. Initially, the cars will be geofenced—restricted to specific areas of Austin—until the system proves reliable.
“It’s prudent for us to start with a small number, confirm that things are going well and then scale it up,” Musk said during an interview with CNBC.
Tesla's robotaxi initiative comes amid rising competition in the autonomous vehicle space, most notably from Alphabet’s Waymo, which currently operates commercial, driverless ride-hailing services in multiple U.S. markets and reports 250,000 paid trips weekly.
Unlike Waymo, which uses lidar and other high-end sensors, Tesla relies on a camera-based system powered by artificial intelligence and neural networks—a more scalable and cost-efficient approach, according to Musk. “What will actually work best for the road system is artificial intelligence, digital neural nets and cameras,” he said.
Musk added that if the Austin rollout is successful, Tesla plans to expand its robotaxi service to Los Angeles and San Francisco next.
The announcement comes as Tesla faces pressure from declining EV sales and political scrutiny. The company reported a 20% drop in automotive revenue in Q1 2025. Musk attributed the slump to factory retooling for a redesigned Model Y but claimed demand is now rebounding.
During the interview, Musk also addressed questions about his political involvement and reaffirmed his commitment to Tesla. He is currently balancing leadership roles across Tesla, SpaceX, and xAI, while serving as an advisor to President Donald Trump and leading the controversial “Department of Government Efficiency” in Washington.
When asked about his long-term plans with Tesla, Musk was clear: “Yes, no doubt about that at all,” he said when asked if he would remain CEO for the next five years.
Musk, whose net worth is estimated at $376 billion by Bloomberg, remains the world’s richest person.
Sara Montes de Oca is the Editor in Chief of TechEchelon. Previously a correspondent and producer in Washington, D.C., covering business, finance, and politics.
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