After all those years of promotional buildup, teasers, and technological challenges, Tesla Robotaxi service is finally up and running—starting out in Austin, Texas. The pilot, launched this week with modest fanfare, is a significant milestone toward Elon Musk's dream of a world without drivers. The first riders? Social media personalities and online content creators, specially selected to clog the internet with first impressions and going-viral content.

The Tesla Robotaxi service is operating in limited mode. Through a small fleet of specially outfitted Model Y vehicles, the rides are geofenced to a specific region of Austin, and invite-only riders can take them now. The vehicles are equipped with Tesla's new Full Self-Driving (FSD) software and camera-based autonomy—still, however, a human safety net. A Tesla safety monitor is on board every vehicle for this pilot mode.

Despite its celebrity status, Tesla is entering a field already populated. Alphabet's Waymo already has a fleet of fully autonomous taxis plying the streets since 2018, most recently in Phoenix, Arizona. The only catch? Waymo employs radar and lidar sensors, while Tesla has chosen to be "vision-only," using cameras and neural networks. Some safety experts have panned the move, especially given Tesla's accident history and the U.S. auto safety agency's current probes into its autonomous claims.

But Musk is hopeful. In a congratulatory tweet on X (formerly Twitter), he teased:

Massive congrats to the @Tesla_AI chip design & software teams on a tremendous @Robotaxi launch!!! Ten years of hard work coming to fruition. Both chip and AI software teams were built from the ground up at Tesla.

One thing that caught people's attention? The fixed price point—$4.20. Whether it's a sarcastic comment or a publicity stunt, Musk never disappoints.

What is a Robotaxi?

Tesla Robotaxi service is Musk's grander vision: a future with self-driving electric taxis reducing traffic, pollution, and accidents. All Robotaxis are based on the Model Y platform and come with Tesla's Autopilot and Full Self-Driving (FSD) software bundle to navigate roads.

While Waymo or Cruise uses costly lidar systems like everybody else's autonomous vehicles, Tesla's uses only cameras and AI processing. Although this has been controversial, especially under tough circumstances like rain, fog, or dark alleys, this has kept Tesla's prices much lower.

Federal authorities are observing closely. In fact, the U.S. National Highway Traffic Safety Administration (NHTSA) is requesting more details regarding how Tesla's autonomous systems react in real-world environments, particularly after previous crashes.

How Does the Tesla Robotaxi Work?

There are just 10–20 Tesla Robotaxis in Austin. Operation is 6 AM to midnight, excluding highways, airports, and weather-impacted zones. You must have an invitation as an eligible user to have access to the system.

When Robotaxi goes public, riders will simply need to download a specific app. Taking a ride will be similar to Uber or Lyft—put in a destination, receive an estimated fare and wait time, and monitor your ride in real-time. When the vehicle pulls up, users simply match the license plate number, enter the vehicle, and click "Start" through the app to start.

Aboard, passengers can customize the ride by tweaking climate control, seat position, and even music—all via app or touchscreen. Riders can call for help or make the vehicle pull over or stop in case help is needed. After the ride, passengers exit, close the doors, and offer their feedback—all through the app interface.