Tesla in Talks With Palo Alto to Launch Robotaxi Service

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Tesla is now in talks with the city of Palo Alto regarding the launch of its Robotaxi service in the city. According to Palo Alto Online, the city has already held a preliminary meeting with Tesla to discuss a potential partnership.

The city of Palo Alto has been looking for an alternative transport option for its citizens, as the free Palo Alto Shuttle ceased operations in 2020. Palo Alto currently has a rideshare carpool service called ‘Link,’ which offers citizens a cheaper alternative to Uber.

Advantages for Palo Alto

Robotaxi could offer the citizens of Palo Alto an excellent alternative means of transportation. They’d be able to summon their own Cybercab for their trip rather than waiting for a pooled form of transportation like Link.

The best part is that Robotaxi, with its extremely low cost per mile, is likely to also cost the residents less while also being more convenient and more widely available. This could be a massive advantage for its residents, who were previously relying on the free shuttle network and now use the fairly inexpensive but somewhat inconvenient Link service.

Robotaxi Testing Grounds

This deal with Palo Alto could represent an excellent opportunity for Tesla to gather additional data and start testing their autonomous taxi service. However, the City of Palo Alto confirmed that “the potential Tesla deal won’t be realized for some time because of regulatory hurdles.” Tesla will need to work with two California bodies to get this off the ground. 

Before this Palo Alto plan can get off the ground, the Robotaxi service will have to be approved by the California Public Utilities Commission, and the Cybercab will also have to be approved by the California Department of Motor Vehicles before it can be used. Once regulatory approval is granted, Tesla will likely begin working in earnest to get their Robotaxis off the ground.

During its Robotaxi event, Tesla announced that it plans to start its Robotaxi service with Model 3 and Model Y vehicles in 2025, with the Cybercab entering the picture in late 2026. It’s not clear whether this potential deal keeps this timeline on track or helps expedite it.

Getting the Robotaxi service off the ground in a small location will be an excellent opportunity for Tesla to refine the overall experience, from the Robotaxi app, which is expected to be a separate riding-sharing app, to the user interface in the Robotaxi.

Tesla will also need to continue developing its automated charging and cleaning hubs, which will undoubtedly need to be refined and adjusted as it gets tested in the real world.

The next two years will undoubtedly be very interesting years for Tesla, as they’ll be facing the biggest steps of regulatory approval for both Unsupervised FSD, as well as Robotaxi.

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Tesla FSD in Europe: June Update

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The road to bringing FSD to Europe has been a long and complex one and filled with regulatory and bureaucratic hurdles. Elon Musk, as well as other members of Tesla’s AI team, have previously voiced their grievances with the regulatory approval process on X.

However, it appears that there is finally some progress in getting things moving with recent changes to upcoming autonomy regulations, but the process still seems slow.

Waiting on the Dutch

Elon commented on X recently, stating that Tesla is waiting for approval from Dutch authorities and then the EU to start rolling out FSD in Europe. Tesla is focusing on acquiring approvals from the Dutch transportation authority, which will provide them with the platform they need to gain broader acceptance in Europe. Outside of the Netherlands, Tesla is also conducting testing in Norway, which provides a couple of avenues for them to obtain national-level approval.

The frustration has been ongoing, with multiple committee meetings bringing up autonomy regulation but always pulling back at the last second before approving anything. The last meeting on Regulation 157, which governs Automated Lane Keeping Systems, concluded with authorities from the UK and Spain requesting additional time to analyze the data before reaching a conclusion.

Tesla, as well as Elon, have motioned several times for owners to reach out to their elected representatives to move the process forward, as it seems that Tesla’s own efforts are being stymied. 

This can seem odd, especially since Tesla has previously demoed FSD working exceptionally smoothly on European roads - and just did it again in Rome when they shared the video below on X.

FSD Supervised testing in Rome, Italy

Pending regulatory approval pic.twitter.com/TXh3uQIfrx

— Tesla Europe & Middle East (@teslaeurope) June 12, 2025

DCAS Phase 3

While the approval process has been slow, Kees Roelandschap pointed out that there may be a different regulatory step that could allow FSD to gain a foothold in Europe.

According to Kees, the European Commission is now taking a new approach to approving ADAS systems under the new DCAS Phase 3 regulations. The Commission is now seeking data from systems currently operational in the United States that can perform System-Initiated Maneuvers and don’t require hands-on intervention for every request.

This is key because those are two of the core functionalities that make FSD so usable, and it also means that there may not be a need to wait years for proper regulations to be written from scratch. Now, the Commission will be looking at real-world data based on existing, deployed technology, which could speed up the process immensely.

What This Means

This new, data-driven regulatory approach could be the path for Tesla to reach its previous target of September for European FSD. While the cogs of bureaucracy are ever slow, sometimes all it takes is a little data to have them turn a bit faster in this case.

Alongside specific countries granting approval for limited field testing with employees, there is some light at the end of the tunnel for FSD in Europe, and hopes are that a release will occur by the end of 2025. With Europe now looking to North America for how FSD is performing, Tesla’s Robotaxi results could also play a role.

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Tesla Launches 'TeslaVision' Contest With Big Prizes — See Last Year’s Winner [VIDEO]

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Tesla’s marketing has always been relatively unconventional, relying on word-of-mouth rather than traditional advertising. The passion of the owner’s community is always massive, but it is especially high now with the launch of the Robotaxi network just around the corner.

Tesla is now tapping into that spring of fan creativity and announced the TeslaVision video contest, with some seriously impressive prizes up for grabs.

Announcing the TeslaVision fan video showcase

Tesla owners & supporters have always been able to see our products & mission for what they truly are.

Your word of mouth has made Tesla what it is today.

The OGs will remember that in 2017, we held our first video contest. 8 years… pic.twitter.com/6pPpkqmqOH

— Tesla (@Tesla) June 10, 2025

The Contest

The core of the contest is simple. Create a video that shows how your Tesla gives you more in life. Tesla is looking for submissions that highlight themes of freedom, safety, fun, and convenience.

Prizes

The prizes definitely make this contest worth entering if you’re good with a camera and have some basic video editing abilities.

For North America, the prizes include a brand new Model Y AWD Long Range, alongside an all-expenses-paid trip to Austin for a tour of Giga Texas. The grand prize winner will also be able to custom order their Model Y, allowing them to select their preferred wheels and color.

The two runners-up won’t get a Model Y, but they’ll also enjoy an all-expenses-paid trip to Giga Texas for a tour of the factory.

The travel and tour include lodging in Austin for 2 nights, as well as economy-class round-trip tickets from anywhere in North America. Tesla will also provide a vehicle for use during the trip.

Hopefully, these winners will also have the opportunity to experience the Robotaxi network while they’re in Austin, as it’s expected to be opened to the public later this month.

Project Loveday

For long-time followers of Tesla, this contest may feel familiar. The contest is a direct throwback to the 2017 Project Loveday contest, which was inspired by a letter to Tesla from a 10-year-old aspiring marketer. That contest was won by MKBHD, with his submission below:

How to Enter

If you’re ready to start filming, here are the key pieces of information you’ll need to know:

• Video must be 90 seconds or less

• Video must be uploaded to YouTube with a public URL

• Make a post on X and Instagram tagging “@Tesla” and include the words “TeslaVision contest” in the post.

• Provide links to both social media posts in your submission to Tesla’s form

• Provide your personal details in the form

• You have until July 17th, 2025, or until Tesla receives 10,000 entries, whichever comes first.

You can find the official submission form and all region-specific details on Tesla's website.

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