Tesla CEO Elon Musk has confirmed that a limited fleet of Tesla robotaxis will begin operating in Austin, Texas, by the end of June, with plans for a rapid rollout across other US cities if the initial launch proves successful.
Musk said the pilot program would begin with around 10 Model Y vehicles equipped with a new version of the company’s Full Self-Driving (FSD) software, dubbed FSD Unsupervised. These robotaxis will be geofenced—restricted to designated areas in Austin—and notably, will not include human safety drivers, though Tesla employees will remotely monitor the vehicles.
“It’s prudent for us to start with a small number, confirm that things are going well and then scale it up,” Musk said. He added that the fleet could grow to 1,000 vehicles “in a few months,” depending on safety outcomes.
The vehicles used will not include the futuristic “Cybercab” revealed last October, which Musk now says will likely debut in 2026. The company’s approach relies solely on camera-based computer vision, unlike rival autonomous driving systems such as Alphabet’s Waymo, which use a combination of lidar, radar, and cameras.
“What will actually work best for the road system is artificial intelligence, digital neural nets and cameras,” Musk said, defending Tesla’s decision to abandon expensive sensors in favour of scalable, software-driven autonomy.
Waymo currently conducts over 250,000 paid, driverless rides per week in multiple US cities, putting Tesla in direct competition with a more established player in the autonomous vehicle space.
Musk also reiterated that Tesla is in discussions with multiple automakers about licensing its FSD software, though no deals have been finalised.
Tesla politics and future leadership
Musk also reaffirmed his commitment to Tesla’s leadership, stating at the Qatar Economic Forum that he intends to stay on as CEO for at least five more years.
“Yes, no doubt about that at all,” he said when asked about his future at Tesla. “It’s not a money thing. It’s a reasonable control thing over the future of the company.”
His remarks come amid increasing scrutiny over his political involvement, particularly his role as a key adviser to President Donald Trump and his leadership of the controversial Department of Government Efficiency (DOGE). That department has aggressively cut US federal agencies, a campaign Musk described as necessary, despite admitting the backlash has been intense.
Tesla reported a 20% decline in automotive revenue and a 71% drop in net income in the first quarter of 2025. Musk attributed the slump to factory retooling for a refreshed Model Y, and claimed demand has since rebounded—though he did not provide specific figures.
Musk has also indicated that he may scale back his political donations going forward, having reportedly contributed over US$250 million to Trump’s re-election efforts. Still, he has dismissed the notion that his political activities have materially harmed Tesla’s brand, asking rhetorically:
“When you buy a product, how much do you care about the political views of the CEO or even care what they are?”
Ambitions beyond Tesla
While reaffirming his leadership at Tesla, Musk also teased future moves for other ventures. He suggested that Starlink, currently a division of SpaceX, could eventually be spun off as a public company. He also mentioned long-term plans for building “millions, potentially billions of humanoid robots,” suggesting Tesla’s vision extends far beyond electric vehicles.
Shares in Tesla closed flat on the day.
