Tesla has initiated the first phase of its long-promised autonomous ride-hailing ambitions, quietly launching its service for employees in Austin, Texas, and the San Francisco Bay Area. Confirmed via a low-key post on the social media platform X, the move marks a tangible step from developing Full Self-Driving (FSD) software – as seen in today’s Model S and other Teslas – towards deploying an actual transportation service. It appears the intent is to compete with mainstays like Uber and Lyft. The post stated, “FSD Supervised ride-hailing service is live for an early set of employees in Austin & San Francisco Bay Area.”
Tesla
Tesla, Inc. is an American electric vehicle manufacturer largely attributed to driving the EV revolution. Through the Model S and subsequent products, Tesla has innovated and challenged industry conventions on numerous fronts, including over-the-air updates, self-driving technology, and automotive construction methods. Tesla is considered the world’s most valuable car brand as of 2023, and the Model Y the world’s best-selling car in the same year, but the brand’s greatest achievement is arguably the Supercharger network of EV charging stations.
- Founded
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July 1, 2003
- Founder
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Martin Eberhard, Marc Tarpenning
- Headquarters
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Austin, Texas, USA
- Owned By
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Publicly Traded
- Current CEO
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Elon Musk
Tesla Says The Service Is Already Racking Up Loads Of Trips
Accompanying the announcement was a short video demonstrating the process. Employees use a rideshare application featuring a prominent button labeled Pick Me Up. Upon the Model Y’s arrival, the user receives a notification. Inside the vehicle, accompanied by a human safety driver, riders interact with the rear infotainment screen. They confirm their name, destination address, and estimated arrival time before pressing Start Ride on the screen.
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Tesla says this internal service has already completed over 1,500 trips, covering more than 15,000 miles of driving. The program shown in the video is called Robotaxi, which appears to refer to the ride-hailing service itself, while the Cybercab designates the futuristic, purpose-built autonomous vehicle Tesla says it plans to build at some point in the future.
A Step Towards Public Ride-Hailing
This employee-only launch aligns with previous indicators of Tesla’s strategy. Reports surfaced earlier this year that Tesla had applied last year for a transportation charter-party carrier permit with the California Public Utilities Commission, according to documents obtained by Bloomberg. This type of permit would allow Tesla to own and operate a fleet for ride-hailing. Notably, this included details for human drivers, including requirements about driver’s licenses and drug testing.
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Engineering chief Lars Moravy says the Robotaxi will do “close to 300 miles” of range with a 50-kilowatt-hour battery.
While Tesla holds permits for testing autonomous vehicles with safety drivers in California, deployment of fully driverless vehicles on public roads in the state is not yet allowed. Perhaps surprisingly for those familiar with CEO Elon Musk’s historically optimistic timelines and promises for product launches, this development seems to align with some of his recent announcements.
Musk has suggested a paid version of the robotaxi service could be launched publicly as early as June 2025. While a full-scale, nationwide rollout would undoubtedly take much longer, this employee testing phase makes a limited public launch seem plausible.
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