Elon Musk's Tesla Robotaxi Officially Launches Limited Testing
Finally, Tesla's self-driving robotaxi is expected to begin a limited testing phase after years of waiting and delays.
In 2019, Musk declared there would be driverless robotaxis on the road the following year, but that did not happen. In 2020, he made a similar promise but it did not materialize. In January of last year, Musk told investors that "Next year, we will definitely have more than 1 million robotaxis".
Currently, Musk seems about to test this plan with around 10 to 12 vehicles serving a small area in Austin, Texas, starting from June 22, 2025, according to Reuters. He acknowledged that reaching 1 million vehicles could take more than a year, but plans to expand beyond Austin this year if the test is successful.
Requiring a Strong Start for Tesla Robotaxi
In a fiercely competitive market, Tesla faces numerous challenges. While Musk continues to predict his plans, rival Waymo has already been operating driverless robotaxis in Los Angeles, San Diego, Austin, and many other cities. Waymo's technology uses lidar, radar, and cameras for navigation, is more expensive, but quickly entered the market. Currently, they have completed over 10 million paid trips.
Due to market share competition, Tesla's sales have declined because of boycott campaigns related to Musk's political views, while competing electric vehicle manufacturers have caught up and even surpassed them. Investors were concerned when Tesla lost $150 billion in market value after Musk's public dispute with President Donald Trump.
Nevertheless, Tesla's stock has somewhat recovered after Musk expressed regret for his comments. By June 2025, Tesla's stock reached $322, a significant increase from $18 in 2015.
On Wall Street, some experts remain skeptical. Garrett Nelson from CFRA commented to Associated Press, "The ability to expand the fleet is just starting with about a dozen vehicles, which is very small".
Morningstar analyst Seth Goldstein said, "It will be successful when people in Austin can download the app and use the robotaxi. But I think that's far away, not until 2028."
Musk Pushes Robotaxi Project Despite Disappointing History
Musk often creates attention and hype. In 2018, he claimed to have "secured capital" for Tesla to become a privately listed company at a high buyout price, but was later discovered by the government to have no written contract, leading to fines.
More recently, in May, Musk told CNBC that Tesla was seeing a "strong recovery" in demand, but just days later, a European automotive industry group reported a 50% sales decline. He has also been criticized for over-advertising the capabilities of Tesla's Full Self-Driving system, which many call inaccurate.
Drivers still need to keep their eyes focused and be ready to control the vehicle in all situations. Last year, federal regulators launched an investigation following several related accidents, and the US Department of Justice is conducting an ongoing investigation with unclear results.
Tesla has faced numerous lawsuits about FSD, some settled and others dismissed. One court noted that the plaintiffs could not prove Musk "intentionally" made misleading statements.
Musk asserts that the robotaxi uses an upgraded Full Self-Driving system that is safer. He believes the service can expand quickly thanks to millions of Teslas already in circulation. An Over-the-Air update will even allow car owners to turn their vehicles into self-driving taxis, earning money while parked at work or during vacations.
"Instead of leaving the car idle, you can make money from your car," Musk said. He sees it as an Airbnb model for cars, allowing owners to add or remove vehicles from their fleet.
Tesla only uses cameras for navigation, unlike Waymo, which uses expensive lidar and radar. In a shareholder call, Musk confidently declared, "Tesla could capture 99% of the market share or more". However, facing competition from Waymo and giants like Amazon, completely dominating the market might be challenging.
Some analysts remain hopeful. Dan Ives from Wedbush Securities believes Tesla's large scale could help them succeed. Conversely, Goldstein acknowledges that Musk has achieved significant accomplishments like selling premium EVs, launching Starlink in rural areas, or landing SpaceX rockets without human intervention.
Musk's approach might not be timely, but he remains an outstanding developer of futuristic technologies in cryptocurrency, technology, and automation.
