Why Tesla robotaxi launch was the easy part

Elon Musk: Millions on road by end of '26

- RACHAEL LEVY NORIHIKO SHIROUZU ABHIRUP ROY

Tesla finally has a robotaxi. Now comes the hard part. The electric-vehicle maker deployed its first-ever driverless cabs in Austin, Texas, on Sunday in a small-scale test of carefully monitored Model Y vehicles. Next, the company faces the steep challenge of executing on CEO Elon Musk’s ambition to refine the software and upload it to millions of Teslas within a year or so.

Such a rapid expansion will prove extremely difficult, about a dozen industry analysts and autonomous-vehicle technology experts told Reuters. These observers expressed a range of views about Tesla’s prospects but all cautioned against assuming a light-speed robotaxi rollout.

Some pointed to advantages Tesla might exploit to overtake rivals including Alphabet’s Waymo and a host of Chinese auto and tech companies. Tesla has mass-manufacturing capacity, and it pioneered remote software updates it can use for self-driving upgrades. The automaker also does not use sensors such as radar and lidar like Waymo and most rivals; instead, it depends solely on cameras and artificial intelligence.

“A rollout could be really quick. If the software works, Tesla robotaxi could drive any road in the world,” said Seth Goldstein, a Morningstar senior equity analyst, while cautioning that Tesla is still “testing the product.” In Austin, Tesla launched a choreographed experiment involving maybe a dozen cars, operating in limited geography, with safety monitors in the front passenger seat, remote “teleoperators”, plans to avoid bad weather, and hand-picked pro-Tesla influencers as passengers.