Overview

• Tesla has begun supervised internal testing of its Full Self-Driving (FSD) ride-hailing service with employees in Austin and the San Francisco Bay Area, completing over 1,500 trips and 15,000 miles.
• CEO Elon Musk confirmed plans to launch a paid autonomous ride-hailing service in Austin by June 2025, starting with 10–20 modified Model Y vehicles.
• The service currently operates under human supervision, with safety drivers present to intervene if necessary, as Tesla works to validate its technology and operational systems.
• Tesla is developing a dedicated autonomous vehicle, the Cybercab, which is expected to enter mass production in 2026 and be priced below $30,000.
• Tesla faces competition from Waymo, which is already delivering 250,000 paid robotaxi rides per week, and Volkswagen, which plans to launch an autonomous ID. Buzz fleet with Uber in Los Angeles by late 2026.