In a live two-part interview with CNBC’s David Faber yesterday, Elon Musk laid out his ambitious near-term plans for Tesla’s Robotaxi Network and the broader rollout of Unsupervised FSD. Speaking from Giga Texas, Elon confirmed that Tesla will be launching its initial Robotaxi pilot service on Austin’s roads by the end of June 2025.
Tesla Already Testing Robotaxi With Safety Drivers
The upcoming Austin launch is the start of Tesla’s long-stated Robotaxi ambitions. After promising true FSD for years, it appears that Tesla is finally ready to debut it, albeit it’ll be closed to the public initially, and it will only be available on Tesla-owned vehicles for now.
Elon expressed confidence in that end-of-June timeline, revealing some of the extent they’ve gone to behind the scenes. Tesla has had test vehicles driving in Austin 24/7, currently with drivers in the cars. However, they’ve seen essentially no interventions required from the safety drivers during the testing phase, which is good news.
The initial deployment in Austin will be deliberately small to ensure that everything operates as expected.
"So we want to be very careful with the first introduction of unsupervised full self-driving, meaning that there’s the cars driving around with no one in it... Well, yes, and sometimes no one in it at all. Just going to pick someone up. So the car obviously has to be incredibly safe." - Elon Musk on CNBC
How the Robotaxi Network Will Operate
Musk said that Tesla intends to launch with just 10 Robotaxis for the first week and then slowly increase it to 20, 30, 40, and higher. All of that is to be done without a safety driver. Tesla will still have teleoperators supervising the vehicles remotely if they get stuck, but other than that, they will be in motion without an occupant in the driver’s seat.
The goal is to hit 1,000 active Robotaxis within a few months and then focus on expansion towards San Francisco, Los Angeles, and San Antonio. While Tesla could start with 1,000 or 10,000 - given that the initial vehicles are just Model Ys, Tesla wants to keep a tight leash on the fleet and make sure that both the safety and experience are up to snuff.
Geofenced and Avoid Certain Intersections
To further increase safety during the early phases, Elon confirmed that Tesla will geofence the Robotaxis' operational areas within Austin, limiting them to parts of the city where Tesla has the highest confidence in the system's performance. He stated they would avoid intersections unless the system is proven to handle them well, or route around them. While the goal is for the cars to operate without safety drivers, there will be rigorous remote monitoring of the fleet's activities.
Looking at the broader regulatory picture, Elon acknowledged the current complexities, with rules varying by state and even by city. He reiterated his call for a "unified set of national regulations" for self-driving vehicles in the U.S. to ensure consistency and prevent a confusing patchwork of differing rules as vehicles travel across jurisdictions.
This seems to be a great idea, at least initially. Autonomous cars will be safer if they adhere to the same rules everywhere rather than having different rule sets based on the state. However, one issue is that pedestrians and human-driven vehicles may expect the vehicles to either perform or refrain from certain actions, such as not turning right at red lights, and having different rules for self-driving vehicles could cause confusion.
Adding Your Vehicle to the Robotaxi Network
During the interview, Elon painted a picture of a rapidly expanding fleet of privately owned Teslas capable of unsupervised FSD. He offered a bold prediction for the near future:
"My prediction is that probably by the end of next year [end of 2026] we will have probably hundreds of thousands, if not—... Over a million Teslas doing self-driving in the U.S. ... Unsupervised full self-driving, where you do not need to pay attention." - Elon Musk on CNBC
Tesla eventually plans to allow vehicle owners to add or subtract their cars from the Robotaxi fleet, creating a model he likened to a combination of Uber and Airbnb. This would allow owners to generate revenue when their vehicle isn’t being used, with Tesla receiving a portion of the revenue.
He also mentioned that Tesla owners will likely even make more from their cars participating in the fleet than their lease costs. Elon seemed confident in Tesla's ability to manage the logistics, stating, "Tesla has all the ingredients necessary to offer a vast self-driving fleet overnight."
Elon on Vision-Only and Licensing FSD
Elon also took the opportunity to emphasize that Tesla’s approach to autonomy, based on vision, is the ideal approach. The road system is designed for humans with eyes, so using neural nets with cameras is the ideal solution.
"Because the way that the road system is designed is for AI. It’s basically, I should say, it’s for intelligence, biological neural net, and eyes. That’s how the whole road system is designed. So what will actually work best for the road system is artificial intelligence, digital neural nets, and cameras... And what we found is that, when you have multiple sensors, they tend to get confused. So do you believe the camera or do you believe lidar? - Elon Musk on CNBC
While Tesla previously included radar in its vehicles, the disagreements between the radar and camera data led to uncertainty, prompting Tesla’s engineers to turn the radars off instead. The decision wasn’t about the expense, as per Elon’s comments, but rather on the reducing utility of other sensor types when camera vision becomes more accurate.
Elon also confirmed that Tesla is "very much open" to licensing its FSD technology to other major automakers and is currently in discussions with several. "The more we demonstrate the capability of self-driving, the more that they will want to license it, and we’re happy to help," he added.
Optimus and Learning
While the interview primarily focused on Tesla’s ambitions for autonomy, Elon also touched on other key aspects of Tesla’s business and future. He reiterated that Optimus and autonomy will “overwhelmingly” dominate the future financial success of Tesla. At multiple Earnings Calls, Elon has said much the same, so it's not surprising to see him stick to this belief.
Elon provided more color on Optimus's development, noting that while achieving the goal of billions of humanoid robots is at least a decade away, even with insatiable demand. He reaffirmed that the target of producing a million robots by 2030 was still reasonable. The training process is evolving; currently, human operators in motion capture (MOCAP) suits perform basic tasks (picking up objects, opening doors, dancing) to bootstrap the robot's intelligence.
The next threshold, Elon explained, is for Optimus to learn from watching videos, like YouTube "how-to" guides, enabling dramatic "task extensibility." Following that, "self-play," where robots learn by interacting with objects, like a child with toys, guided by a reward function, will be key.
Within five years, Tesla envisions Optimus being capable of household chores like doing dishes, walking the dog, and even proactively understanding and fulfilling user needs. This level of AI advancement requires immense compute. Elon confirmed Tesla's own Dojo training program, based in New York, is contributing, though Tesla will continue to buy many GPUs from Nvidia.
Watch the CNBC Interview
FULL ELON INTERVIEW ON CNBC (PARTS I & II)
Here's the complete, consolidated interview of Elon Musk with David Faber, recorded yesterday in two parts at Giga Texas. (The second part starts at 23:54)
Tesla has introduced a new, more flexible and affordable way for owners to get peace of mind after their factory warranty ends. This new service is a monthly subscription that replaces the previous Extended Service Agreement (ESA) in the United States.
The new subscription model makes it more appealing to owners, as it avoids a large upfront payment. This new subscription also offers better coverage terms than before.
Longer Coverage, Better Flexibility
The biggest upgrade in this new format of the ESA is the length of the coverage. The old prepaid ESA was limited to just two years or 25,000 miles beyond the factory warranty, for a total of up to 75,000 miles.
The new monthly program doubles the potential coverage period, offering protection for up to four additional years beyond the factory warranty, or until the vehicle reaches 100,000 miles, whichever comes first. Coming from a basic vehicle warranty of 4 years or 50,000 miles, this is a huge jump up in customer protection.
Pricing & Deductible
The monthly price is simple, but it varies depending on the model. The Model 3 is the most affordable at just $50 per month, while the Model X is the most expensive at $150 per month.
Model 3: $50 / month
Model Y: $60 / month
Model S: $125 / month
Model X: $150 / month
However, Tesla will also charge a $100 deductible for each service visit that covers an included repair, on top of the monthly subscription fee.
Exclusions
The ESA is an exclusionary warranty, meaning it covers the repair or replacement needed to correct a failure of most parts manufactured or supplied by Tesla. However, there are some parts not covered under the ESA, which include:
Issues arising from accidents, modifications, or environmental damage
Essentially, the ESA is designed to cover the components other than the drivetrain. That includes the touchscreen, computers, heat pumps, suspension, or other non-drivetrain electronics that aren’t covered after the 4-year basic warranty.
Tesla vehicles come with an extensive battery and drivetrain warranty that covers these items for up to 8 years. The maximum mileage varies by model. RWD Model 3 and Model Ys are covered for the first 100k miles, while Long Range Model 3s and Ys are covered up to 120k miles. The Model S and Model X are covered for up to 150,000 miles or 8 years.
Eligibility and Sign-Up
Eligibility for the new ESA subscription is pretty clear-cut.
Your vehicle must be within its 4-year / 50,000-mile Basic Vehicle Limited Warranty. Tesla will send customers whose basic warranty is about to expire a notification approximately 3 months before the time-based expiry.
The subscription is not available for leased vehicles or vehicles that were purchased used. Tesla plans to offer eligibility to customers who purchase their vehicle at the end of a lease by the end of 2025, and for used vehicle customers in the near future.
The Cybertruck, due to its relatively newness to the market, doesn’t have access to the ESA quite yet - but it will be coming “in the near future.” For Canada and Mexico in particular, the ESA is not yet available, but Tesla has confirmed plans to bring this subscription to other regions soon.
Subscribing is done through the Tesla App. Tap Upgrades> Service Plans > Extended Service Agreement. Once you review the terms and the monthly fee, you can then hit Subscribe and confirm your payment information.
If the ESA is not visible, your vehicle is not eligible for the subscription.
Payments for the ESA only begin once your original warranty has expired. However, you can sign up at any time, and payments will automatically start when your factory warranty expires.
Other Service Plans
Tesla also offers a Windshield Protection Plan and a Wheel and Tire Protection Plan, if you didn’t already know. Both of these plans are subscription-based and are currently only available in the United States. However, Tesla has indicated that it plans to expand to other regions in the near future.
Tesla is officially opening up its long-anticipated Robotaxi service — but only for a select, invite-only group. Invitations have gone out to influencers to experience the first autonomous rides this Sunday, June 22, in Austin. Dubbed an “early access” program, this marks the official launch of Tesla’s Robotaxi service and the new Robotaxi app.
Invitation Details
Tesla is taking a cautious approach to its initial rollout. Only invited users — largely influencers and carefully selected individuals — will get to hail a ride using the new Robotaxi app. These early testers will be among the first to experience what Tesla describes as a fully autonomous ride, although not entirely without human oversight.
The invitations were sent out early this morning and offered plenty of new details about the Robotaxi service, the app and ride restrictions.
Human Safety Monitors
Elon Musk previously stated that there would be “no occupant in the driver seat,” and while that’s technically accurate, it’s not exactly what we expected. These Robotaxi rides will have a Tesla employee seated in the front passenger seat. This “safety monitor” will oversee the ride but not intervene unless necessary.
Interestingly, the documents shared with influencers indicate that these safety monitors will be subject to the same restrictions as Tesla owners with FSD Supervised. The cabin camera will monitor their gaze to make sure they’re paying attention and presumably warn them if they stare off to the side for too long.
Teleoperators
While there will be safety monitors in the vehicle, there are also expected to be teleoperators. Although Tesla doesn’t explicitly mention teleoperators, it does note that the cabin camera will only be used in the event of a support request or if “operator assistance” is required in an emergency.
Teleoperators aren’t a surprise at all, as all autonomous vehicles use them today when a vehicle needs help. While in the case of a Model Y, it’s possible for the safety monitor to take over the vehicle, Tesla is preparing for the future when there won’t be a safety monitor in the vehicle and the vehicle doesn’t have a steering wheel like the Cybercab.
Cabin Camera and Mic: Off By Default
Passenger privacy appears to be a priority. Tesla confirms that the cabin camera and microphone will be off by default during the ride. These features will only activate if the rider opts in, requests assistance, or in the case of an emergency. This appears to contradict what Tesla mentions about the cabin camera monitoring the safety driver, but it’s possible Tesla means that these features will be off by default when there isn’t a safety monitor in the vehicle.
Tesla says that after the ride, the camera may be temporarily activated to check for cleanliness or forgotten items before the vehicle continues to its next destination.
Will React to Emergency Vehicles
While we know that these vehicles will be equipped with a newer version of FSD, it’s not yet clear exactly which version it's. However, it appears that this version will now feature sound detection, allowing it to detect and react to emergency vehicles.
Tesla says the vehicles will use the vehicle’s microphone to recognize sirens or other road alerts. If a safety event is detected, the vehicle will reduce media volume and notify users on screen.
Like Tesla’s vision processing, all audio is processed in the vehicle and not transmitted unless explicitly enabled by the rider.
Recording and Sharing Encouraged
Tesla is allowing invited guests to bring one additional guest with them to experience the Robotaxi network. Tesla will be allowing the recording and sharing of photos and videos, so we should have plenty of new details on the Robotaxi soon.
Tesla is also asking users to rate their experience via the Robotaxi app, likely trying to identify any trouble points.
Restrictions for Robotaxi Rides
Tesla’s Robotaxi service will operate within a geofenced area of Austin and will be available between 6:00 AM and 12:00 AM. So, essentially, there are only six hours when Robotaxis won’t be available. Tesla states that users will be able to see the geofence area within the app; however, we currently don’t know the size of this area.
Airport rides are not allowed, presumably due to more complicated scenarios. Tesla also states that the Robotaxi service can be paused at any point due to inclement weather; however, the forecast for Austin over the next week is clear and sunny, so this is unlikely to be an issue.
Pricing and Fees
Tesla’s agreement states that all rides will be priced in U.S. dollars and may include tolls, airport fees, and other regulatory charges. It’s not clear whether invited guests will need to pay for rides, but since Tesla is mentioning prices and doesn’t explicitly state that these rides are free, they’ll likely have to.
We may soon find out what Tesla will charge for Robotaxi rides and compare it to other services, such as Uber and Lyft. However, like all other Tesla pricing, these will likely change over time as well.
Tesla reserves the right to charge users for damages or litter left in the vehicle, according to documents shared with influencers.
Robotaxi App, Not the Tesla App
One of the more surprising revelations is that Tesla is not using the Tesla app for this service. Instead, riders will be required to download a new Robotaxi app. While code related to Robotaxi features has been found in Tesla’s main app, it now appears that the Robotaxi app will serve ride-hailing passengers.
The Robotaxi details we’ve seen in the Tesla app may be for future support when owners start adding their vehicles to the Robotaxi fleet. This way, an owner can open up the Tesla app and know the status of their vehicle.
The Robotaxi app won’t be publicly available on the App Store yet. Instead, invitees will receive a separate download invitation, likely through a service like TestFlight, which allows users to test unreleased apps. Tesla emphasizes that only the original invitee can download and use the app, but hopefully, we’ll have our first look at the Robotaxi app soon.
What’s Next
While this represents a soft launch for Tesla’s Robotaxi service, it offers our first glimpse at what the service will be like in terms of restrictions, geo-fenced areas, price, and, of course, a look at the Robotaxi app. Like all things Tesla, they’ll iterate and improve the app, service, and process over time.
We should have a lot more details and the first ride-along videos soon.
