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 recently introduced Buy Now, Pay Later (BNPL) payment options in the United States and Canada for items in the Tesla Shop, letting owners pay later for new vehicle accessories.
However, with Tesla app update 4.46, they’re expanding support to a much more critical area — Tesla Service. Qualifying owners in the U.S. and Canada will now be able to use Pay Later options for service performed by Tesla, which includes maintenance or repairs.
Services are provided by Affirm and Klarna, as per Mark Fonte, a Senior Software Engineer working on the Tesla app.
The new feature is seamlessly integrated into the existing service workflow within the Tesla app.
On the Service Estimate, before work on the vehicle begins, you will see a new message on the estimate screen: Pay over time - see if you qualify.
Tapping this link opens the payment calculator, which allows you to view potential payment structures and monthly costs. This provides a clear picture of what a payment plan would look like before you commit to servicing your vehicle.
Additionally, after service is complete and you are ready to pay, the final payment screen will present Affirm and Klarna (region-dependent) as selectable payment methods, alongside the usual options of Tesla Credit or your primary payment card.
Tapping Affirm or Klarna here will reopen the payment calculator, and a confirmation prompt will appear before selecting either BNPL option.
Service Now, Pay Later
Overall, the integration of BNPL providers for service is a thoughtful one for vehicle owners. The terms can vary widely, so it’s important to compare them to other payment options you may have access to. The additional financial flexibility, when faced with a large repair bill, allows more owners to get their vehicle professionally and properly serviced by Tesla.
For those getting larger work done, such as high-voltage battery pack replacements, this is an excellent option to spread payments over a longer period, helping reduce the burden of vehicle repair.
With the launch of Tesla’s Robotaxi Network, we didn't just get a peek into the future of transportation—we got a detailed look at the next version of FSD.
Videos from early access riders revealed some additional capabilities over current public FSD builds, showing off how it handles emergency vehicles and more.
Safety First for First Responders
One of the biggest changes in FSD’s capabilities is its improved handling of emergency vehicles. During a ride in Austin, Robotaxi is seen identifying an approaching ambulance using a combination of visual and audio data, activating its turn signal, and smoothly pulling over to the side of the road to let the ambulance by (video below).
This is a driving task that requires more than simple awareness of laws. It requires reasoning skills to determine where to move the vehicle to create a safe path, as well as the ability to quickly identify an ambulance or another emergency service vehicle with its sirens and lights activated. Understanding the context and executing a safe and predictable maneuver is crucial, as a wrong maneuver could actually make matters worse.
For FSD and Robotaxi to gain both public trust and regulatory approval, this skill is non-negotiable, and Tesla demonstrated its advancements right here. It’s not surprising Tesla added this ability before Robotaxis made it to public roads.
How does a fleet of Robotaxis keep its eyes clean without constant human intervention? Well, a clever new feature that Tesla has previously hinted at in their FSD release notes provides the answer. Robotaxi can now trigger a specific wiper and washer fluid sequence designed to clean the main front-facing cameras.
This might seem like a small detail, but it’s a brilliant solution to one of Tesla’s primary challenges - maintaining sensor clarity. While the vehicle could simply wipe the windshield multiple times, this is a clever solution to clean the most important area of the windshield as thoroughly as possible by focusing extra wiper fluid and wipes on that area.
Complex Maneuvers
Two areas where current builds of FSD V13.2.9 sometimes show hesitation are U-turns and navigating busy parking lots. The latest Robotaxi build appears to improve on both of these areas.
This first video shows a Robotaxi performing a flawless U-turn with no hesitation, and then smoothly switching lanes to take a turn.
Another video on X shows FSD’s updated confidence in navigating a complex parking lot for a precise drop-off. Today’s builds can sometimes struggle in parking lots, being slow and overly cautious when not needed, or too confident elsewhere. This appears to have been improved in these Robotaxi FSD builds with improved path planning and confidence.
Tesla Robotaxi service is just so smooth. Handles parking lots very well, noticeably better than the competitors pic.twitter.com/D5OxSrajCW
We’re also likely to see FSD begin to handle more complex destination options, including parking garages and driveways, which have been promised features for almost a year. The Robotaxi FSD build has also gained the ability to safely pull over on a road, similar to the ambulance example above, but it uses this capability to drop off and pick up passengers. This is a feature that was mentioned in FSD v13.2’s Upcoming Improvements section.
Better Nighttime Performance
Driving at night presents additional challenges, including headlight glare and reduced visibility. The latest version of FSD appears to handle it with almost the same grace as it does during the day. Remember that Tesla’s Robotaxis are available up until midnight. Early access riders mentioned that FSD is far smoother and is a step up from the behavior of current FSD builds.
Impressive nighttime performance from Tesla Robotaxi, dropping us off at In-N-Out as smoothly as it did during the day. pic.twitter.com/yQOhphtR0q
Now, what happens when a passenger feels unsafe or has a critical question? Tesla has placed two key buttons on the rear screen for just those purposes. Users are given control over the ability to Call Support, which almost instantly connects them with a real human agent at Tesla’s Robotaxi Operations Center via video call.
Here’s what happens when you hit the support button in Tesla’s Robotaxi’s.
While it isn’t a fundamental driving feature, it does mean that Tesla’s team can provide support to Robotaxi vehicles remotely, like issuing directive commands to have a vehicle proceed straight, rather than attempting to turn through a gated community.
The other option, Pull Over, allows a rider to immediately request the vehicle to safely pull over, which it will do when it can find a safe and open location. At this point, you can either continue your trip or get out of the Robotaxi.
Both options prompt you with an “Are You Sure?” button before letting you continue, which means you won’t have your Robotaxi ride come to an abrupt stop if you tap the ‘Pull Over’ button by accident.
What This Means for Tesla Owners
These features are likely to be included in future FSD builds. This is essentially the new benchmark by which to judge FSD, at least once it begins rolling out to customer vehicles.
Many of the core driving improvements, such as the more confident maneuvering and emergency vehicle response, will make their way to the wider fleet in upcoming FSD updates.
Remember - Robotaxi isn’t just a service, it is also a preview of Tesla’s driverless FSD builds.
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