Tesla Robotaxi service begins cautiously with $4.20 rides in Austin

After quite a few years of anticipation, Tesla's driverless ride-hailing service finally went live, deploying a small fleet of Model Y electric cars on the streets of Austin. The service started operating this morning and is a carefully controlled and invite-only affair, offering us a teaser of an autonomous future.

The @Tesla_AI robotaxi launch begins in Austin this afternoon with customers paying a $4.20 flat fee!

— Elon Musk (@elonmusk) June 22, 2025

For a select group of "Early Access Program" members, hailing one of these electric cars is now a reality. Through a new section within the main Tesla app, users can book a ride and set their destination. However, the experience isn't entirely without a human presence. For now, a "Tesla Safety Monitor" occupies the front passenger seat of each Robotaxi, a precautionary measure as the system navigates its first real-world interactions with the public.

The initial operational area is a geofenced portion of south-central Austin, encompassing areas from Zilker and South Lamar to Lakeshore and East Riverside-Oltorf. The service is available from 6 a.m. to midnight, but won't be making trips to the airport just yet. This limited scope allows Tesla to gather data in a familiar environment, avoiding more complex traffic scenarios as it refines the technology. The initial fleet is modest, reportedly consisting of about 10 specially marked Model Y EVs.

Typical of CEO Elon Musk, the pricing for these initial rides has been set at a flat fare of $4.20. While certainly one of the most affordable autonomous rides available, the figure is a nod to Musk's favorite internet meme (420). Inside the vehicle, passengers have a degree of control - they can adjust climate settings and access support features through the car's rear touchscreen or their own smartphone app. For privacy, Tesla has stated that the in-cabin camera and microphone are deactivated by default but can be enabled by the rider to contact support if any issues arise during the trip.

This cautious rollout comes just as Texas prepares to implement new, stricter regulations for autonomous vehicles. A new state law was signed by Governor Greg Abbott last Friday, just after state lawmakers sent a letter to Tesla asking it to delay the Robotaxi launch, and is set to take effect on September 1. This legislation will introduce a new layer of oversight for companies operating driverless cars. Operators will be required to secure a permit from the Texas Department of Motor Vehicles before they can deploy vehicles without a human controller.

Robotaxi rear screen UI pic.twitter.com/rdZuvqMY1I

— Zack (@BLKMDL3) June 22, 2025

The law also grants the state authority to revoke these permits if the vehicles are deemed a public safety risk. Companies like Tesla will need to submit detailed plans on how their autonomous systems will coordinate with police and first responders in the event of an accident. The new rules mandate that all autonomous vehicles follow state traffic laws, be equipped with onboard recording devices, meet federal safety standards, and have the ability to come to a safe stop if the self-driving system fails. The vehicles must also be registered, titled, and insured in Texas, creating a clear framework for accountability that has been developing as automated driving technology advances.

First turns in the Robotaxi pic.twitter.com/Z5aYcwDnMf

— Zack (@BLKMDL3) June 22, 2025

Tesla's current use of a safety monitor may temporarily sidestep the "driverless" classification, but the company will need to comply with this comprehensive legal structure to realize its long-term vision of a widespread Robotaxi network. The initial launch, limited to a curated list of enthusiasts and influencers, provides a forgiving testbed. The real challenge will come when the service opens to the broader public, and the electric cars must navigate the unpredictable nature of city traffic entirely on their own, under the watchful eye of state regulators.

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