Tesla Starts Long-Awaited Robotaxi Service With Low-Key Roll-Out

Tesla launched its long-awaited robotaxi service on the streets of Austin on June 22, following almost a decade of hype from Mr. Elon Musk, kicking off a precarious new era for the carmaker.

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AUSTIN, Texas — Tesla launched its long-awaited robotaxi service on the streets of Austin on June 22, following almost a decade of hype from Mr. Elon Musk, kicking off a precarious new era for the carmaker.

Several of the initial users livestreamed video as they downloaded a ride-hailing app and went on their first driverless taxi trips. Shortly after 2 pm local time, an online influencer who goes by the moniker Bearded Tesla showed the empty driver seat during a ride in a red Model Y sport utility vehicle (SUV) that lasted just over 10 minutes. "It was smooth," one of the riders said on the video after the trip ended.

The users with early access are being charged a US$4.20 (S$5.40) flat rate for rides, Mr. Musk said earlier on June 22 in a social media post. Tesla hand-picked the initial riders, meaning the public will still have to wait.

The launch is beginning modestly, with just a handful of vehicles limited to a small area of the city.

The low-key roll-out has nonetheless been highly anticipated by investors, who are counting on the new business line to revive a company battered by flagging sales and a consumer backlash against Mr. Musk. The Tesla chief executive officer is betting the company's future on autonomous driving, artificial intelligence, and humanoid robots—buzzy but still largely unproven markets.