Elon Musk announces the launch of Tesla’s Robotaxi service in South Austin with a flat $4.20 far

Tesla’s long-hyped Robotaxi service officially began rolling out in South Austin on Sunday afternoon, with each ride priced at $4.20 flat, as announced directly by Elon Musk in a tweet.

The launch is Tesla’s first real-world test of its plan to deploy fully autonomous vehicles that rely entirely on cameras and AI, not the sensors and LiDAR systems used by rivals like Waymo.

Leading up to the launch, Elon had teased the rollout for months on X, and on Sunday, that promise turned real. Social media posts and videos from the area showed Tesla-branded Model Y robotaxis cruising through the city, officially marking the start of the new service.

Tesla had earlier sent early access invites to a limited number of users, giving them the ability to download the Robotaxi app and hail rides starting that same day. Many of the first users posting online were already well-known Tesla supporters on X.

Tesla begins with 10 vehicles and safety monitors in South Austin

The service is starting out small. According to Tesla’s new Robotaxi info page, which went live on June 22, just 10 Model Y SUVs are being used within a small, specific part of South Austin. Rides are available daily from 6:00 a.m. to midnight, but may stop during bad weather.

Every ride includes a Tesla employee in the front passenger seat, listed as a “safety monitor.” Tesla has not explained if this employee has control over the vehicle or access to a kill switch.

Notably, these are not the futuristic Cybercabs that Elon unveiled in October 2024. Tesla instead chose to use updated 2025 versions of its Model Y, equipped with a new version of its Full Self-Driving software—what Elon describes as “unsupervised” autonomy.

These vehicles are fully driverless but still include the safety monitor up front, breaking from what companies like Waymo and the now-paused Cruise used to do with human backup drivers.

Ed Niedermeyer, author of Ludicrous: The Unvarnished Story of Tesla Motors, confirmed the location of a Robotaxi depot near Oltorf Street. He reportedly observed branded robotaxis entering and exiting the parking lot in the days leading up to the launch.

On Sunday morning, he spotted a Model Y robotaxi brake suddenly twice, once while crossing an intersection. In both cases, it was passing parked police cars. There were no riders inside during these events.

Tesla restricts press access and blocks transparency efforts

Most details about the Robotaxi rollout have come from Elon’s own posts or from early users sharing footage. Tesla hasn’t released key data and has actively tried to keep information from being made public.

It allegedly blocked TechCrunch’s public records request with the Texas Department of Transportation, and also tried to stop the City of Austin from giving documents to Reuters.

In April, Taylor White, Tesla’s senior counsel for infrastructure, wrote a letter to the Texas Attorney General’s office claiming that some of the requested documents included confidential information, trade secrets, or business data shared with TxDOT.

On the safety side, in-cabin cameras won’t be on during rides by default. Tesla says the camera will only activate if there’s an emergency or if support is requested. It may also turn on after a trip ends to verify the car’s readiness for its next ride.

Tesla’s new info page also lists several rider rules. Riders are banned from smoking, vaping, drinking, doing drugs, or using the vehicle for any criminal activity. The company says anyone who records and shares content that violates these rules can have their access suspended or terminated.

After the launch, Ashok Elluswamy, Tesla’s head of Autopilot and self-driving, posted a photo from a Robotaxi launch party. Elon followed up on X, posting: “Super congratulations to the @Tesla_AI software & chip design teams on a successful @Robotaxi launch!! Culmination of a decade of hard work.”

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