Tesla Launches Invite-Only Robotaxi Service in Austin with 2025 Model Y Fleet

Tesla has initiated a limited self-driving car service in Austin, Texas, marking a significant step in its autonomous vehicle programme. Company leaders, including Elon Musk, have emphasised that the autonomous technology unveiled is critical to Tesla’s future success.

The service, currently exclusive to Tesla-invited early adopters, operates a fleet of approximately 10 to 20 2025 Model Y SUVs in a designated area of south Austin. Rides are available daily from 6:00 a.m. to midnight through a Tesla-developed robotaxi app, with a Tesla staff member serving as a “safety monitor” in the right front passenger seat.

Terms of service shared by invited riders on X indicate that the service “may be limited or unavailable in the event of inclement weather.” During this invite-only phase, rides are priced at a nominal $ 4.20, as announced by Musk on X on Sunday.

Last week Tesla distributed early-access invitations to select clients, enabling them to download and use the robotaxi app starting Sunday. While the exact number of recipients remains unclear, posts on X suggest that many invitations targeted Tesla’s most vocal online supporters.

A robotaxi information page published on 22 June 2025 provides instructions for installing the app, reporting lost items and general rider guidelines. However, it lacks the comprehensive detail offered by Waymo, Alphabet’s autonomous-vehicle company, which operates commercial robotaxis in Phoenix, Los Angeles, San Francisco and Austin.

Texas Regulatory Context

The launch coincides with new legislation signed by Texas Governor Greg Abbott, requiring autonomous-vehicle operators to obtain a state permit. Effective 1 September 2025, this law departs from Texas’s previously lenient approach to self-driving regulation.

It mandates that operators like Tesla certify the safety of their autonomous vehicles, provide emergency protocols for police and first responders and adhere to Level 4 autonomy standards, which allow vehicles to operate without human intervention under specific conditions.

According to Reuters, Tesla’s system relies solely on cameras, forgoing LiDAR or radar, a departure from industry standards. Musk has consistently argued that a camera-based system enhances safety and scalability, but critics have highlighted safety concerns and past delays as reasons for scepticism.