Tesla launches robotaxi service amid mixed reviews and skepticism

In a significant move for the autonomous vehicle industry, Tesla launched its robotaxi service in Austin, Texas, on June 22, 2025. This event marked the introduction of driverless Tesla Model Y cars, which operate under a geofenced area and were tested by a select group of riders. The launch event drew considerable attention, especially as it featured social media influencers and analysts taking part in the inaugural rides. While the atmosphere was celebratory, numerous reports surfaced detailing the service's challenges, including navigational issues, misjudgment of road lanes, and instances of the vehicle halting unexpectedly during rides. According to initial reports, the service started limited to an estimated 10 to 20 vehicles, far less than what Elon Musk had suggested earlier, where he predicted thousands of robotaxis on the roads by 2026. The pricing for rides was set at a playful flat fee of $4.20, which drew both laughter and scrutiny from those involved. Analysts remarked on the shaky start of the service, noting that although the launch seemed smooth in some respects, the implementation still raised significant concerns about safety and operational reliability. As Tesla now positions itself at the forefront of the autonomous vehicle market, industry observers remain doubtful. Tesla's ambitious plans hinge on the successful scaling of its robotaxi service, which integrates advanced self-driving technology developed in-house. However, various industry experts warn against overoptimism regarding rapid expansion. Reports emphasized the mixed performance of the robotaxis, with recordings of the vehicles making poorly executed maneuvers, including swerving into opposing traffic lanes and miscalculating stops at intersections. Experiences shared on social media showcased early adopters both impressed and alarmed at the cars' autonomous capabilities. As the company grapples with these initial challenges, the long-term success of its robotaxi service will depend on continuous improvements in software and hardware. For now, Tesla is committed to working with city officials in Austin to address safety and operational concerns. The company faces significant competition, with rival companies in the UK, China, and elsewhere also seeking to gain traction in the autonomous vehicle space. Despite the evident hurdles and public scrutiny, Tesla's recent launches signal a crucial step towards a potentially transformative business model in urban mobility.