Tesla shares surged 9% on Monday after the electric vehicle (EV) giant unveiled its long-anticipated autonomous ride-hailing service in Austin, Texas. The early-stage rollout is limited to a handpicked group of users—primarily long-time Tesla fans, content creators, and shareholders—who were invited to test the self-driving experience aboard Tesla’s Model Y robotaxis.
The move marks a significant step in Tesla’s pursuit of fully autonomous vehicle technology, as CEO Elon Musk continues to push the company toward transforming its EV fleet into a vast, self-driving ride network.
Early Feedback from the Inner Circle
Initial reactions from invited passengers have been overwhelmingly positive, with many taking to X (formerly Twitter) and YouTube to share their experiences. One participant reported completing 11 rides with “zero issues,” praising the system’s smoothness and efficiency. Musk amplified the early praise, reposting several firsthand accounts to his X feed over the weekend.
This invitation-only approach not only helped generate buzz among Tesla’s most loyal supporters but also served as a strategic public relations move, leveraging influencer-style promotion to shape public perception of the nascent service.
Growing Pains: Reports of Traffic Violations
Despite glowing reviews from insiders, not all observations were positive. Local researchers and road users in Austin noted that some of the robotaxis appeared to violate traffic rules, raising questions about the readiness of Tesla’s Full Self-Driving (FSD) software for broad deployment.
This discrepancy in feedback highlights the broader challenge facing Tesla: achieving a level of autonomy that can safely and legally coexist with human drivers across complex urban environments.
Playing Catch-Up in a Competitive Global Market
While Tesla’s Austin debut has energized its investor base, the company is still playing catch-up in the global autonomous vehicle race. Alphabet’s Waymo currently leads the U.S. market, reporting over 250,000 commercial autonomous rides per week and more than 10 million lifetime trips. In China, Baidu’s Apollo Go has surpassed 11 million trips, with other players like WeRide and Pony.ai rapidly expanding their footprints.
Tesla’s approach diverges from competitors like Waymo, which relies on a combination of lidar, radar, and high-definition mapping. Tesla, by contrast, is banking on a camera-only system paired with AI, a method critics argue may require more time to prove its safety and scalability.
