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Tesla Cybercab
This Tesla Cybercab won’t be the car self-driving passengers see around Austin in June (Sjoerd van der Wal/Getty Images)

What we now know about Tesla’s Austin robotaxi launch this year

It’s expected “end of June or July” and “in many other cities in the US by the end of this year.”

Despite its tumultuous quarter, Tesla says it’s on track for its robotaxi launch in Austin this year. That means regular people will be able to pay money to ride in a self-driving fleet of Tesla-owned vehicles beginning in the “end of June or July,” CEO Elon Musk said on the company’s earnings call, where he offered a few more details about the project.

Earlier this year Musk had said June, but in the scheme of his timelines, July seems close enough. Back in 2019, Musk said the company would roll out a fleet of robotaxis “next year,” i.e., in 2020.

Musk now says the service will be available “in many other cities in the US by the end of this year.”

As with everything Tesla, take any promises and timelines with a grain of salt. Here’s what else we now know about Tesla’s robotaxi launch, according to Musk:

  • The robotaxis are Model Ys, not Cybercabs. The vehicles consumers will be able to hail in Austin will be autonomous Model Ys, Musk said, but added that any of the “vast majority of the Tesla fleet” is capable of being a robotaxi, including models S, 3, X, or Y. The two-seat steering-wheel-less gold Cybercab that Musk trotted out last fall is still scheduled for production in 2026.

  • The service will have “10 to 20 vehicles” at its start. “We’re still debating the exact number to start up on day 1, but it’s, I don’t know, maybe 10 or 20 vehicles on day 1,” Musk said. He added that the company plans to “scale it up rapidly after that” and that “there will be millions of Teslas operating autonomously in the second half of next year.” That’s around the same time Musk expects the program to “become material and affect the bottom line of the company.”

  • It’s happening in Austin. While that might seem like an obvious point, having a ride-hailing service within a sunny, geofenced area where it’s been training for months is not the same as having unsupervised full self-driving in the wild across the US. Despite this, Musk said what the company is “solving for is a general solution to autonomy, not a city-specific solution for autonomy,” and that it would be a “very scalable thing for us to go broadly within whatever jurisdiction allows us to operate.”

  • The cars will have remote operators. “We do have remote support, but it’s not going to be required for safe operation,” Musk said, downplaying the need for remote operators. “Every now and then if a car gets stuck or something, someone will like, unlock it.”

  • Testing for autonomous full self-driving in Austin seems to be doing pretty well. Musk says the electric vehicle company is working through “unusual” edge case interventions. “These are really very rare, like a single intervention every 10,000 miles,” Musk said, adding that the company is burning lots of rubber to come across those in Austin. “There’s just always a convoy of Teslas going just going all over to Austin in circles.”

  • Unsupervised FSD coming to your personal vehicle “before the end of this year.” Musk sees the transition from unsupervised full self-driving robotaxis to unsupervised full self-driving personal vehicles as an easy one, sharing that the cars are already driving themselves from the factory to the parking lots. We’d like to point out that that is not the same thing. The routes Tesla vehicles drive autonomously outside the factories are previously mapped, low-traffic, and short: 1.4 miles for the Model Y and 0.6 miles mostly in an underground tunnel for the Cybertruck in Texas.

  • Musk thinks Tesla will trump Waymo. Despite the fact that Google-owned Waymo is already operating a self-driving ride-hailing service in Austin (and a few other cities), Musk estimates Tesla will have at least a “90-something percent” market share. “I dont see anyone being able to compete with Tesla at present,” Musk said, adding that Waymo’s lidar-equipped cars are too few and too expensive. He also made a pretty good dad joke: “The issue with Waymos cars is it costs way-mo money.”

When pressed for more details about the robotaxi rollout, Musk demurred.

“Its only a couple of months away, so you can just see it for yourself in a couple of months in Austin,” he said.

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Rather than fully cracking down on scam ads, Meta worked to make them harder to find

In its latest piece on Meta’s scam ads, Reuters found that the social media giant didn’t just remove fraudulent ads from its platforms — it also worked to make them harder for governments and journalists to find.

Fearing that Japanese regulators would require universal advertiser verification — a measure Meta estimated would cost roughly $2 billion to implement and potentially reduce its revenue by nearly 5% — the company took steps to make scam ads less “discoverable” to “regulators, investigators and journalists,” according to internal documents reviewed by Reuters.

“So successful was the search-result cleanup that Meta, the documents show, added the tactic to a ‘general global playbook’ it has deployed against regulatory scrutiny in other markets, including the United States, Europe, India, Australia, Brazil and Thailand,” Reuters wrote.

Previous Reuters reporting found Meta internally projected that about 10% of its 2024 revenue would come from ads tied to scams and banned goods, though the company later said that estimate was overly broad. Reuters also reported the rate was double in China.

“So successful was the search-result cleanup that Meta, the documents show, added the tactic to a ‘general global playbook’ it has deployed against regulatory scrutiny in other markets, including the United States, Europe, India, Australia, Brazil and Thailand,” Reuters wrote.

Previous Reuters reporting found Meta internally projected that about 10% of its 2024 revenue would come from ads tied to scams and banned goods, though the company later said that estimate was overly broad. Reuters also reported the rate was double in China.

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Michael Burry, the “Big Short” investor who called Tesla “ridiculously overvalued,” is not currently shorting Tesla

Earlier this month, “The Big Short” investor Michael Burry said Tesla has been “ridiculously overvalued” for “a good long time” — and reiterated that message in a post on X on Tuesday. But the once prominent Tesla short seller isn’t currently betting against the stock.

Asked directly whether he would short Tesla now, Burry replied simply: “I am not short.”

Tesla is expected to report a double-digit decline in fourth-quarter deliveries this week.

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SoftBank becomes OpenAI’s biggest backer after fully funding $40 billion investment

SoftBank has fully funded its $40 billion investment in OpenAI, overtaking Microsoft as the company’s largest financial backer, CNBC reports. The deal was contingent on OpenAI transitioning to a for-profit public benefit corporation, which it did in September.

However, longtime partner Microsoft retains substantial influence over OpenAI with its roughly $13 billion investment, which translates to a stake worth about 27% of the startup’s valuation — which has been cited as high as $830 billion — as well as exclusive cloud and commercial licensing rights tied to Azure.

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Tesla-compiled estimates show Q4 deliveries expected to fall 15% from last year

A Tesla-compiled average of analyst estimates pegs fourth-quarter deliveries at 422,850, which would mark a 15% slump from the 495,570 the company delivered in the same quarter last year, if realized. The full-year estimate of 1.6 million vehicles would represent an 8% decline from 2024 and the second annual decline for the EV company. The estimates are notably lower than the consensus estimates compiled by Bloomberg and FactSet, which have been declining over the past month.

The market-implied odds derived from event contracts show that most traders think Tesla deliveries will be more than 410,000 but less than 420,000 in the quarter ending December.

(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)

While Tesla typically shares its compilation of analyst estimates with institutional investors, this is the first time the company has shared those numbers on its own website. Tesla’s numbers include estimates from Daiwa, DB, Wedbush, OpCo, Canaccord, Baird, Wolfe, Exane, GS, RBC, Evercore ISI, Barclays, Wells Fargo, Morgan Stanley, UBS, Jefferies, Needham & Co., HSBC, Cantor Fitzgerald, and William Blair.

Actual numbers are expected Friday.

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Cybertruck battery material supplier writes down Tesla deal by 99%

South Korea’s L&F Co., a supplier of battery material for Tesla’s “apocalypse-proof” Cybertruck, has written down the value of its Tesla contract by more than 99%, Bloomberg reports — another sign that Cybertruck sales are faltering.

The company cited changes in supply quantities, slashing a contract valued at nearly $3 billion in 2023 to about $7,000 now.

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