Tesla launches long-discussed robotaxi service

NEW YORK: Tesla began offering robotaxi services Sunday in the US city of Austin, Texas, an initial step that Elon Musk´s backers believe could lead to the company´s next growth wave.

“Super congratulations to the @Tesla_AI software & chip design teams on a successful @Robotaxi launch!!” Musk posted on the X platform that he owns. “Culmination of a decade of hard work.”

The kickoff -- which comes as Musk refocuses on his business ventures following a contentious stint in Donald Trump´s administration -- will employ the Model Y sport utility vehicle rather than Tesla´s much-touted Cybercab, which is still under development.

The long-awaited launch follows the dramatic meltdown earlier this month in relations between the US president and the world´s richest person, which saw a cascade of bitter attacks from both men.

Since then, Musk has publicly expressed regret for some of his statements, while his company´s Texas operation has readied the Austin push -- part of a major drive on autonomous technology and artificial intelligence that Tesla believes will yield huge profits.

Wedbush analyst Daniel Ives said autonomous technology could be a catalyst for potentially $1 trillion or more in additional market value. “There are countless skeptics of the Tesla robotaxi vision with many bears thinking this day would never come,” said Ives, who predicted Trump´s administration would clear roadblocks for Tesla and pivot from the recent “soap opera.”

One of the robotaxi´s self-described first users was Tesla fan Herbert Ong, who livestreamed his ride Sunday in a red vehicle that included a person in the passenger seat monitoring the trip for operational safety. The unveiling in the Texas state capital comes amid questions about how Tesla will try to overcome criticism of Musk´s activities for Trump.

Tesla saw profits plunge 71 percent in the first quarter following poor sales in several markets. In picking Austin for the debut of the autonomous vehicle (AV) service, Musk is opting for a US state known for its business-friendly approach to regulation.

“Texas law allows for AV testing and operations on Texas roadways as long as they meet the same safety and insurance requirements as every other vehicle on the road,” the Texas Department of Transportation told AFP.

The Texas legislature this year passed a bill requiring prior authorization from the state´s Department of Motor Vehicles before companies can operate on a public street without human drivers, a group of Democratic lawmakers said in a June 18 letter to Tesla. Citing the enhanced system, the lawmakers asked Tesla to delay testing until after the law takes effect on September 1.

The lawmakers asked for “detailed information demonstrating that Tesla will be compliant with the new law” should the company choose to proceed.

Musk had initially planned the launch for June 12, before pushing back, saying he was being “super paranoid” about safety. “We want to deliberately take it slow,” Musk said May 20 on CNBC, telling the network that Tesla would probably only operate 10 autonomous vehicles the first week.