Tesla CEO Elon Musk announced that a small number of the company’s Robotaxi vehicles are now operating in Austin, Texas without any human safety monitor on board. This pilot deployment began in December under a Transportation Network Company permit that explicitly allows driverless operations. Tesla AI chief Ashok Elluswamy confirmed that unsupervised cars are being mixed into a broader fleet that still includes vehicles with safety monitors, and that the ratio of fully driverless units will increase progressively over the coming months. This marks Tesla’s first live test of truly autonomous ride-hailing after years of promises, following initial limited launches in Austin and San Francisco with human supervisors present.

Tesla’s ability to expand its driverless service remains constrained by state and federal regulations. In California, the company still lacks permits for fully unsupervised testing on public roads, forcing it to concentrate its initial rollout in Texas. Meanwhile, Alphabet’s Waymo operates a commercial robotaxi service with no onboard safety human in Phoenix and San Francisco, and Baidu’s Apollo Go leads in China. Deutsche Bank analysts warn that Tesla must demonstrate reliable Full Self-Driving (FSD) unsupervised performance and scale its Robotaxi network before earning additional valuation credit. The National Highway Traffic Safety Administration is investigating Tesla’s FSD systems, and regulators in California have cited the company for deceptive marketing of its driver-assist features.

With electric-vehicle deliveries in Q4 down 16% year-over-year to 418,227 units, Tesla’s growth narrative has shifted toward autonomous ride-hailing and humanoid robotics. Musk has forecasted a widespread U.S. Robotaxi network by year-end and has set an ambitious target of covering half the U.S. population, objectives he has historically missed. Investor surveys show that a majority of U.S. consumers are hesitant to ride in driverless vehicles, citing safety concerns, and 65 fatalities have been linked to Tesla’s Autopilot or FSD systems. Analysts at Electric Vehicle Intelligence Report and Mahoney Asset Management emphasize that consumer acceptance and demonstrable safety records will be critical to unlocking the next phase of revenue growth and justifying Tesla’s current valuation.