Tesla’s long-awaited robotaxi service is set to launch next month, starting in Austin, Texas.
According to CEO Elon Musk in an interview with CNBC (the CEO’s second interview of the day) the company is taking a careful approach to ensure safety, beginning with just 10 autonomous vehicles before expanding to over 1,000 in the following months—if the service runs smoothly.
The initial rollout will see fully driverless Model Y vehicles operating within geofenced areas of Austin, primarily at night. Tesla has already been running tests with these cars on city streets. The company says it’s testing thousands of vehicles around the clock in preparation for launch.
Expansion to other cities, including San Francisco and Los Angeles, is expected “in the not too distant future,” Musk added during a recent update. He also emphasized the need for unified national regulations around self-driving vehicles.
Musk predicted that by the end of 2026, there could be hundreds of thousands—or even over a million—autonomous Teslas on U.S. roads. Tesla’s plan includes a ride-hailing model similar to Uber or Airbnb, where owners can opt their vehicles in or out of the fleet to earn income.
“These things happen slowly, but then all at once,” Musk said, adding that several major automakers have approached Tesla to license its Full Self-Driving (FSD) technology. “We’re happy to help.”
Tesla says its focus remains on autonomy and its humanoid robot project, Optimus—both of which Musk believes will be key to Tesla’s future financial success.
“We’ve seen a major rebound in demand at this point,” he noted, while also taking a shot at traditional media, saying legacy outlets are effective at shaping public perception: “It’s propaganda, but it works.”
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