On June 22, 2025, Tesla officially launched its much‑anticipated Robotaxi service in a limited, invitation‑only program based in South Austin, Texas. 10 to 20 modified Model Y vehicles began serving passengers – mostly Tesla shareholders and influencers – at a flat fare of $4.20 per ride. Front-seat safety monitors assessed the Robotaxis’ performances.
Tesla Robotaxi Launch Sparks Safety Concerns in Austin:
Would you ride in a Tesla robo taxi or is it still too soon to trust?
Some passengers liked it!
Dan Ives of Wedbush praised the Robotaxi’s deft maneuvering on crowded streets:
Influencer Sawyer Merritt’s one-word tweet –“Robotaxi” – garnered a lot of attention:
The stock market was quick to pick up the news. Tesla shares jumped over 10%, adding almost $100 billion in market value – hovering in the $1.1 trillion – $1.14 trillion range.
Close But No Cigar
The Robotaxi launch wasn’t all sunshine and lollipops. Passengers’ videos captured disturbing glitches: lane drifting, speeding, sudden braking, stopping mid‑intersection – even entering a handicapped parking space.
Among the incidents recorded in the first week:
● Wrong‑way lane entry and erratic swerving across double yellow lines
â—Ź Speeding in zones posted at 15 mph or 30 mph
● Phantom braking triggered by shadows or “phantom” road obstacles
● Stops straddling intersections and medians when riders pressed “pull over”
â—Ź Failure to detect a reversing UPS truck during parking
As you might expect, these alarming clips raised massive doubts about safety disclosures and performance data. They prompted a federal review by the National Highway Traffic Safety Administration (NHTSA). Critics argue Tesla’s camera‑only vision system, eschewing radar/lidar redundancy, may be inherently unsafe.
The spike in Tesla’s share price injected $95 – 104 billion into Tesla’s market cap, which momentarily reached $1.14 trillion. While Musk reportedly netted a cool $12 billion in personal net worth on paper.
From a financial perspective, Robotaxis represent Tesla’s turn toward a high‑margin, software‑as‑a‑service model, potentially outpacing its existing EV business. Expanding from a dozen cars in Austin to a national fleet will require years of testing, regulatory approvals, and safety improvements.
Tesla’s Not The Only Game in Town – Waymo Eyes NYC…
Alphabet’s Waymo is a self-driving technology company and subsidiary of Google’s parent company and it’s here to give Tesla a run for its money. It’s already running fully autonomous, no‑driver fleets in Phoenix, San Francisco, LA, Miami, Atlanta, and Austin. It’s also filed for a permit to begin robotaxi testing in Manhattan with trained safety operators behind the wheel.
Unlike Tesla’s camera‑only approach, Waymo uses a combination of lidar, radar, and cameras, a proven sensor stack praised for its redundancy – especially in urban driving.
Waymo plans to send out manually‑driven mapping vehicles in July 2025 in preparation for autonomous trials as soon as required regulatory approval is granted.
New York’s a tough traffic nut to crack. With its double-parked cars, cyclists, construction zones, and perpetual pedestrians, NYC driving demands skill and technical precision.
Even Without a Driver, It Don’t Come Cheap…
Early lidar‑based robotaxis once cost $400+K per vehicle. Waymo’s price estimates have dropped to around $180K each.
Tesla envisions a sub‑$25K purpose‑built Cybercab by 2026, designed specifically for robotaxi use. If Tesla can work out the glitches and get a bunch of effective and safe Robotaxis on the road, the company may justify its valuation and usher in a fresh revenue engine.
There’s Gonna Be A Showdown…
Tesla’s bold gambit might yield a huge payoff…or go the way of the Edsel. Waymo’s methodical approach could win trust but risk being outpaced by public sentiment and investor impatience.
Buckle up, people. It’s going to be a bumpy ride…
