Skip to content
Saturday 8 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE
MorningWire

European business, markets and politics

FTSE 100
10,901.09
+0.31%
DAX
26,319.45
+0.69%
CAC 40
8,714.93
+0.17%
STOXX 50
6,523.86
+0.33%
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
More
GermanyFranceBankingAIEnergyFintechPropertyCapital Markets
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
  • DE
Monday 23 June 2025 10:42 am  |  Updated:  Monday 23 June 2025 10:53 am

Musk’s robotaxi launch: Can Tesla rival Waymo?

By: Saskia Koopman

Tech Reporter

Add as a preferred source on Google
Tesla CEO Elon Musk has been blamed for taking his eyes off the brand
Tesla CEO Elon Musk

Tesla has kicked off its long-promised robotaxi service in Austin, Texas, using a small fleet of modified Model Ys.

The rollout, which began on Sunday, represents the company’s first paid, passenger-carrying trial – and a critical test of its camera-only self-driving vision.

The service is limited to geo-fenced neighbourhoods, avoids airports and complex intersections, and includes a Tesla safety employee in the passenger seat.

The driver’s seat is empty, and remote human operators stand by to intervene if needed.

Chief executive Elon Musk confirmed via X that early rides cost a flat $4.20, and clips shared by influencers show seamless, albeit tightly controlled, journeys through the Texas capital.

Tesla’s shares edged higher in pre-market trading on Monday, a sign of tentative investor optimism following the launch.

Analysts at RBC Capital Markets said the launch framework was broadly expected, but noted the importance of Tesla’s attempt to scale a vision-only autonomous system.

“If Tesla can prove this works safely at scale, its cost advantage over lidar- and radar-heavy systems could be significant”, RBC said.

They estimated that autonomy could make up around 60 per cent of Tesla’s valuation long-term.

Still, the roll-out comes amid increasing regulatory scrutiny. On Friday, Texas governor Greg Abbott signed a law requiring autonomous vehicle operators to obtain DMV permits before removing human drivers – rules that take effect 1st September.

Federal regulators are also active. The National Highway Traffic Safety Administration, NHTSA is still investigating Tesla’s claims about autopilot and full self-driving.

A letter sent in May requested additional detail about the robotaxi’s safety architecture.

Scale vs safety

Unlike rivals like Waymo, which uses lidar, radar and highly detailed maps to guided vehicles, Tesla relies solely on cameras and AI.

Read more

Robotaxi rules row drives Waymo-Uber rift ahead of London launch

Getty Images logo on a building facade, symbolizing brand presence in the media and photography industry.

Musk argues that this makes the system cheaper and easier to scale – and eventually, more adaptable.

For now, however, Tesla’s system still requires multiple layers of oversight.

And the Austin launch only includes about 10-20 vehicles operating in very specific conditions.

Forrester VP analyst Paul Miller dubbed it a “low-key” launch and cautioned: “Tesla is betting on its scale and data advantage. But if the FSD system isn’t a big leap forward from what’s already on roads, it’ll need an army of remote operators – adding costs and potential reputational risks”.

Meanwhile, competitors are already far ahead. Waymo has completed more than ten million driverless paid rides across several US cities, including Phoenix and San Fransisco.

Its vehicles operate without any in-car safety monitor.

What comes next?

Tesla says a new “cyber cab” – purpose built for autonomy with no pedals or steering wheel – is on the way and will cost under $30,000.

Musk has suggested as many as 1,000 robotaxis could be on roads “within months”, with San Francisco and Los Angeles in the expansion pipeline.

But catching up to Waymo’s tech maturity and regulatory acceptance won’t be easy, as Barclays analyst Dan Levy said: “There’s still a long road ahead to build the infrastructure needed for full autonomy – both physically and legally”.

Still, supporters remain bullish, with Wedbush analysts – who took a ride in the new service – describing the experience as “safe, comfortable, and personalised”.

They also called the launch “the beginning of Tesla’s $1tr AI journey”.

Read more

Triumph for Tesla as top court rules 5G licensing case should be heard in UK

Tech billionaire Elon Musk has been asked to serve in Donald Trump’s cabinet. (Photo by Apu Gomes/Getty Images)

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business

People & Organisations

  • driverless cars
  • elon musk
  • Robotaxi
  • tesla
  • Waymo

Trending Articles

  • WPP slashes jobs as revenue continues to fall

  • Liverpool owners tipped to sell – but not to Amazon boss Bezos – by former CEO

  • Revolut founder’s wealth set to balloon amid talks of share award at $500bn valuation

  • Starling plans to ‘come out swinging’ in diversification bid

  • As it happened: Stocks rise despite new tensions in Strait of Hormuz; Oil price climbs

More from Morning Wire

  • Robotaxi rules row drives Waymo-Uber rift ahead of London launch

    Transport & Infrastructure
    Getty Images logo on a building facade, symbolizing brand presence in the media and photography industry.
  • Triumph for Tesla as top court rules 5G licensing case should be heard in UK

    Lawsuit
    Tech billionaire Elon Musk has been asked to serve in Donald Trump’s cabinet. (Photo by Apu Gomes/Getty Images)
  • AI spending overshadows Alphabet and Tesla earnings

    Tech
    The Competition and Markets Authority said they've heard complaints Google's search advertising costs are higher than expected
  • Easyjet takes £200m profit hit in Iran war travel chaos

    Transport & Infrastructure
    Ryanair has axed around 170 services while Easyjet said it was cancelling 274 flights because of French air traffic control strikes.
  • Wizz Air profit wiped out by rising fuel prices

    Markets
    The CEO of Wizz Air received a huge bonus in 2024.
  • Here’s the right way to criticise the media

    Opinion
    Elon Musk and a woman in blue blazer seated with microphones, golden car in background
  • Fulham sign up $15bn Silicon Valley tech and AI firm ClickHouse as front-of-shirt sponsor

    Sport Business
    No article content provided. Please provide the article content to generate relevant alt text.
  • Tax bill and Middle East weigh on Heathrow despite record numbers

    Aviation
    Commercial airplane landing at Heathrow Airport, seen from behind, with a prominent Heathrow sign below.
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Business

  • Markets
  • Banking
  • Technology
  • Energy
  • Property
  • Fintech

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook