Tesla is on the verge of launching its robotaxi service in Austin, Texas, amid growing anticipation. However, the rollout has hit a significant speed bump due to public skepticism about the company’s full self-driving (FSD) technology. According to the Electric Vehicle Intelligence Report (EVIR), 60% of consumers consider Tesla’s FSD ‘unsafe,’ while 77% are unwilling to use it.
Initial Launch Plans
Tesla plans to start with just 10 robotaxis on the road, with a “safety monitor” sitting in the driver’s seat during operations. CEO Elon Musk had previously suggested that Tesla owners could earn passive income by allowing their vehicles to operate autonomously as taxis without human intervention. However, the initial launch will feature human supervision.

Safety Measures and Restrictions
The robotaxi service will have multiple safety requirements, including:
- A safety monitor in the driver’s seat
- Riders must agree to a terms of service agreement
- Users must have a debit or credit card on file
- Rides can only be requested through the app between 6 a.m. and 12 a.m.
- Operations are limited to a geofenced area that changes based on the time of day
- Only invited users can download and use the Robotaxi app
Background and Context
Tesla has been testing its FSD system, which has driven a cumulative total of 3.6 billion miles, nearly triple the 1.3 billion miles reported a year ago. Despite this progress, public trust remains a significant challenge. The company needs the robotaxi to succeed after a dismal first quarter, marked by a 20% drop in auto sales revenue and a 13% year-over-year decline in deliveries.
Broader Implications
The success of Tesla’s robotaxi is crucial not only for the company but also for the future of autonomous driving. While companies like Waymo have successfully launched commercial autonomous services, Tesla faces unique challenges due to its existing customer base and the limitations of its FSD technology. As Tesla moves forward with its robotaxi service, addressing public concerns and proving the safety and reliability of its autonomous technology will be critical to its success.