Tesla on Track to Launch Robotaxi Trial in Austin, Texas, by June End, Musk Says

Tesla sales have fallen worldwide with rising competition and as CEO Elon Musk faces a backlash.

Advertisement
By Reuters | Updated: 21 May 2025 14:17 IST
Highlights
  • Tesla sales have fallen worldwide with rising competition
  • Musk has said he will reduce his work for Trump and focus on Tesla
  • Tesla is in talks with major automakers to license the FSD software

A successful robotaxi trial is crucial for Tesla as its valuation hangs on that bet

Photo Credit: Reuters

Tesla is set to begin a test of its long-promised robotaxi service on schedule in Austin, Texas, by the end of June, Chief Executive Elon Musk said on Tuesday, even as the company faces safety questions from a US regulator.

The electric vehicle maker will roll out about 10 self-driving cars in some parts of the city, and scale up to about a thousand within a few months, Musk told CNBC in an interview.

"We are actually going to deploy not to the entire Austin region, but only the parts that are the safest."

Advertisement

Tesla sales have fallen worldwide with rising competition and as Musk faces a backlash for his right-wing political views and his work for US President Donald Trump.

Musk has said he will reduce his work for Trump and focus on Tesla. "My rough plan on the White House is to be there for a couple days, every few weeks, and to be helpful where I can be helpful," he said.

Advertisement

A successful robotaxi trial is crucial for Tesla as Musk has shifted the company's focus away from building a new, cheaper EV platform to launching the robotaxi service and its Optimus humanoid robots. Much of Tesla's valuation hangs on that bet.

"The only things that matter in the long term are autonomy and Optimus," Musk told CNBC.

Advertisement

Autonomous vehicle technology has been hard to commercialise, with tight regulations and heavy investments forcing many companies to give up. Those still in the race, including Alphabet's Waymo, have faced increased scrutiny.

The National Highway Traffic Safety Administration has been investigating collisions involving Tesla's full self-driving (FSD) advanced driver assistance software in reduced roadway visibility conditions since October. The US road safety regulator asked Tesla last week to answer questions on its paid robotaxi service launch to assess how the cars will perform in poor weather.

Advertisement

Tesla is in talks with major automakers to license the FSD software that is expected to underpin its robotaxis, Musk said.

To power his broader artificial intelligence vision, Musk's xAI startup has been ramping up its data center capacity to train more advanced models, and its supercomputer cluster in Memphis, Tennessee, called "Colossus," is touted as the world's largest.

xAI will deploy a million of Nvidia's advanced Blackwell chips at a new facility near Memphis, Musk said. "So long as Nvidia is better than what we make, we'll keep buying from Nvidia," he said. xAI bought a 1-million-square-foot property in Southwest Memphis, Tennessee, the Greater Memphis Chamber said in March.

Musk, who merged xAI with his social media platform X in March, said a merger between Tesla and xAI was not being considered but was "not out of the question," though it would need shareholder approval.

© Thomson Reuters 2025

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Tesla, Elon Musk, Robotaxi, xAI
Advertisement

Related Stories

Popular Mobile Brands
  1. Nothing Phone 4a Price in India, RAM and Storage Options Leaked Online
  2. Motorola Razr Fold  Launched at MWC 2026, Edge 70 Fusion Tags Along
  3. MediaTek to Demonstrate 6G, Wi-Fi 8 CPE, AI Glasses at MWC 2026
  4. Tecno Pop X Confirmed to Launch in India on This Date
  5. Lenovo Launches New Tablets, Yoga Series Laptops at MWC 2026
  1. Moto Buds 2 Plus Launched With Dynamic ANC, Sound by Bose Alongside Moto Buds 2 at MWC 2026
  2. MediaTek Set to Demonstrate 6G, 5G-Advanced, Edge AI Innovations at ‘AI For Life’ Showcase at MWC 2026
  3. MWC 2026: Lenovo Unveils New Yoga, IdeaPad Series Laptop Models Alongside Legion Tab (2026), Idea Tab Pro Gen 2
  4. Bluepoint Games Reportedly Pitched a Bloodborne Remake, but Was Turned Down by FromSoftware
  5. Lenovo ThinkPad T-Series, X13 Detachable, ThinkTab X11 and ThinkBook 14 2-in-1 Launched at MWC 2026
  6. Ai+ Pulse 2 Launched in India With 6,000mAh Battery, 50-Megapixel Camera: Price, Specifications
  7. MWC 2026: Qualcomm Unveils FastConnect 8800, X105 5G Modem-RF With Wi-Fi 8; Snapdragon Wear Elite Announced
  8. Honor Unveils Humanoid Robot, Blade Battery Tech at MWC 2026; Robot Phone Confirmed to Launch in 2026
  9. Lenovo Legion Go Fold Concept Gaming Handheld Showcased at MWC 2026 Alongside New Concept Laptops
  10. Motorola Razr Fold With Snapdragon 8 Gen 5 SoC Launched at MWC 2026, Motorola Edge 70 Fusion Tags Along
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.