According to CEO Elon Musk, Tesla will begin a limited rollout of its long-promised robotaxi service in Austin, Texas, by the end of June. The test launch comes as federal regulators continue to question the safety of the company’s autonomous driving technology.
Initially, Tesla will deploy approximately 10 self-driving vehicles in select areas of Austin, with plans to scale up to about 1,000 cars within a few months. The rollout will focus only on parts of the city deemed safest for operation.
The trial is a pivotal move for Tesla, which has shifted its strategic focus away from developing a more affordable EV platform to advancing robotaxi technology and humanoid robots known as Optimus. The company’s long-term valuation is increasingly tied to these autonomous and AI-driven initiatives.
The National Highway Traffic Safety Administration is currently investigating crashes involving Tesla’s Full Self-Driving (FSD) software, particularly in low-visibility conditions. Last week, the agency requested additional information from Tesla to evaluate how its paid robotaxi service will handle adverse weather.
Tesla is also in discussions with major automakers about licensing its FSD software, which will serve as the foundation for its robotaxi operations.
In parallel, Musk’s AI venture xAI is ramping up infrastructure to support its broader artificial intelligence goals. A new data center in Memphis, Tennessee—named “Colossus”—is being outfitted with a million of Nvidia’s latest Blackwell chips, positioning it as the largest known supercomputer cluster.
Nevertheless, Musk has indicated he intends to reduce his involvement in political activities to refocus on Tesla’s core business initiatives.
