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Tesla Launches $4.20 Robotaxi Trial In Austin Amid Regulatory Scrutiny And Safety Concerns

Driverless Tesla robotaxis began operating in Austin with flat-rate rides, while new Texas legislation demands permits for autonomous vehicles, raising questions about safety, compliance, and the future of urban mobility.

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Tesla Launches .20 Robotaxi Trial In Austin Amid Regulatory Scrutiny And Safety Concerns

Autonomous Tesla Model Y cars were spotted running around Austin, Texas, on Sunday morning as Tesla’s much-awaited robotaxi test began. On a confirmation post on X, CEO Elon Musk confirmed the service would go live later that afternoon with rides available at a fixed fee of $4.20.

Witnesses observed several Tesla cars driving on their own, although a passenger sat in the front seat of each car, allegedly serving as a safety monitor. It is not known how much authority these monitors have over the cars. 10 to 20 cars will be operating within a specific area in Austin during Tesla’s trial.

Recently, Tesla issued special invitations to a few social media influencers to join the limited pilot program. The firm stated that it will restrict operations to safe zones, steer clear of poor weather and complicated intersections, and bar minors under 18 years. Musk emphasized that Tesla would focus on safety and be willing to postpone the rollout if necessary.

The robotaxi introduction follows Texas Governor Greg Abbott signing new legislation mandating firms to secure a state permit to deploy fully autonomous cars. While the legislation becomes effective in September, it represents a change from Texas’s previously lax regulatory strategy to driverless technology. It identifies autonomous vehicles as those with at least “Level 4” capability capable of driving without human intervention in specified conditions and orders compliance with safety requirements.

A number of state legislators called on Tesla to postpone the opening because the regulations were pending. Tesla had no comment, and the governor’s office also didn’t comment.

Tesla’s robotaxi initiative is viewed as key to the company’s future valuation, particularly as competitors such as Waymo and Amazon’s Zoox struggle with scaling efforts. Tesla is not only doing without lidar or radar but using only cameras, a decision Musk insists trades off safety for cost-effectiveness.

Regulators are wary as the high-stakes dash to autonomy gains momentum.