Elon Musk Hails ‘Successful’ Tesla Robotaxis Launch in Austin Amid Reported Glitches

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Tesla’s robotaxi service just debuted in Austin, boosting the company’s stock by 8% as CEO Elon Musk declared the rollout a major success. But early videos from test rides revealed troubling on-road behavior.

Shortly after the launch, footage emerged showing Tesla’s autonomous vehicles appearing to violate traffic laws, prompting scrutiny from federal regulators, according to Reuters. The incidents cast a shadow over what Tesla had hoped would be a high-profile milestone.

Flat fees and VIP riders

Tesla’s long-teased robotaxi vision finally hit the streets of Austin this weekend, with a small fleet of 10 to 20 Model Y vehicles offering fully driverless rides… sort of. Each came with a human “safety supervisor” in the front passenger seat, and service was limited to clear weather and daylight hours. Musk posted on X celebrating the “successful” unveiling of the breakthrough technology, calling it the result of a decade of work by Tesla’s AI and chip teams.

Musk previously named Austin as the launch site in May. As CNBC noted, the initial rides were by invitation only and curated to a list of early adopters, including shareholders and influencers. Each ride came with a symbolic price tag: $4.20.

Despite the limited scale, the launch made a strong impression on investors. Tesla shares jumped 8% following the trial run, as markets responded to the company’s latest move toward autonomy.

Trouble in test mode

Footage from the Austin rollout revealed moments where Tesla’s driverless cars didn’t just falter — they broke the rules. In videos widely circulated online, vehicles crossed into opposing lanes, stopped mid-road, and exceeded posted speed limits. Reuters noted that what started as a tightly controlled pilot quickly unraveled into a series of public missteps caught on camera.

The National Highway Traffic Safety Administration responded swiftly, contacting Tesla for details. The company confirmed on Monday that its replies to the agency are confidential. The regulator is also assessing how the system operates under adverse conditions, as part of an ongoing investigation into Tesla’s broader Full Self-Driving technology.  

Autonomous roads ahead

Robotaxis are rapidly becoming a fixture on public roads, with multiple players ramping up real-world deployments. Tesla’s fleet may still be in early testing, but others are advancing more quickly. Waymo, in collaboration with Uber, already has deployed around 100 fully driverless vehicles operating in Austin and is now expanding to Atlanta; a clear sign artificial intelligence is taking hold on city streets.

But with test rides braking in traffic and veering off course, the road to trust remains very much under construction.

See our coverage of Tesla’s robotaxi trademark dispute, where bold innovation meets legal roadblocks in the race toward autonomous driving.