The introductory price for Tesla’s Robotaxi Network has finally been updated. In a post on X, Elon Musk confirmed that the new fare would be rolling out to complement the new Robotaxi geofence expansion.
This change marks the first adjustment to Tesla’s fares since the initial $4.20 launch price 23 days ago. While the price increase may seem significant in terms of percentages, when compared to other options in the ride-hailing area, it is still drastically cheaper.
But the price is now a princely $6.90, as foretold in the prophecy 😂
Robotaxi currently operates on a simple, flat-rate model. The new $6.90 fare gets you a ride to anywhere within the recently expanded geofence.
So far, this is the opposite approach compared to other services, such as Waymo or traditional ride-sharing options like Uber and Lyft. All these services use dynamic pricing based on distance, time of day, and demand. A comparable trip on any one of these services could cost anywhere from $30 to $65, and potentially even higher during peak hours.
That doesn’t even include the tip fees for human drivers either - another win for Robotaxi (can you tip a Robotaxi?).
Even with the adjustment, the flat $6.90 fare remains less than half the price of a typical competing ride, making Robotaxi the most affordable point-to-point transportation option in Austin, aside from mass transit, for now.
A “Maturing” Service
The price change, moving from one meme-worthy number to another, is a sign that Robotaxi is finally graduating from its initial pilot phase. Following the first major expansion of the service area, this adjustment is a logical next step towards finding a more sustainable flat price.
While the new fare is a 65% increase over the old fare, the key takeaway is that it is still far cheaper than other options, and still just as meme-worthy. Tesla is aiming to have its early access riders complete as many rides as possible during these early months, and this pricing is still very reflective of that.
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Alongside the major expansion of the Robotaxi Network service area in Austin, Tesla has also rolled out a fairly significant upgrade to the Robotaxi app, helping address user feedback with more quality-of-life features.
These updates are primarily focused on polishing the user experience, helping to make the process of hailing and completing a ride smoother and more intuitive. For now, the app is still available to early-access users only.
Tesla has added three key features to this update, and while they aren’t as exciting as a public FSD update, they’re still a good step towards a better Robotaxi experience for everyone.
Walking Directions
First up is that the Robotaxi app now provides walking directions to your selected pickup point. Since pickups aren’t exactly at your location, this makes it easier to get to your designated pickup area. The previous Robotaxi app update added the ability to change your pickup location, but with directions now to your pickup spot, you now have a clean overview of your entire route, the walking and car portion.
Edit Destination
Next is in-trip destination editing. Things change, and sometimes your destination can change too. Now, the Robotaxi app supports the ability to change the trip destination after booking has already been completed. Having the flexibility to change destinations is important, as it helps bring the experience of Robotaxi closer to traditional taxi and ride-hailing platforms.
Destination Closing Soon
Finally, the app now checks the opening hours of your intended destination, much like the in-car navigation does. If your destination is closed or will be closed shortly after your estimated arrival time, the app will now make this clear when you’re selecting a destination.
This screen shot shows the new @robotaxi app addition of information about your destination, particularly if the location is closed and when it will open!
The last item in Tesla’s release notes for this update is that the Robotaxi service area is now larger, covering approximately 42 square miles, up from the previous service area of about 19 square miles.
This Robotaxi app update is version 25.7.5 and Tesla’s official release notes state:
Extends to a larger service area
Walking directions to pickup and your final destination
Search results show if a destination closes near arrival time
Edit your destination after booking
This is the second update to the Robotaxi app. As Tesla expands its operational footprint and adds more vehicles and more users, these improvements to the app will be ever more necessary.
To show off its scalability, Tesla has officially launched its first major expansion of its Robotaxi service area in Austin, Texas. The expansion comes just 22 days after the program’s initial public launch.
That’s a stunningly quick pace that sets a benchmark for how fast we’ll be expecting Tesla to roll out additional expansions as they validate and safety-check in additional area and cities. The new geofence not only adds a significant amount of new territory, but also makes Tesla’s service area in Austin approximately 4 miles larger than Waymo’s.
The expansion, which went live for users in the early access program earlier today, reshapes the map into… what we can call an upside-down T (Tesla logo meaning), but it’s open to interpretation. It helps connect more parts of the city, and increases the service area by more than double.
So far, the initial launch has been operating without any significant issues, which means Tesla is ready and willing to continue expanding the program.
Rapid Scaling
While the larger map is a clear win for early-access users and especially those who live in Austin, the most significant aspect here is just how fast Tesla is going. Achieving a major expansion in just over three weeks since its initial launch is a testament to Tesla’s generalized autonomy approach with vision only.
Unlike methods that require intensive, street-by-street HD mapping that can take months or even years just to expand to a few new streets, Tesla’s strategy is built for this type of speed.
This is Tesla’s key advantage - it can leverage its massive fleet and AI to build a generalized, easily-applicable understanding of the world. Expanding to a new area becomes less about building a brand-new, high-definition map of every street light and obstacle, but instead a targeted safety validation process.
Tesla can deploy a fleet of validation vehicles to intensely focus on one zone, allowing the neural nets to learn the quirks of that area’s intersections and traffic flows. Once a high level of safety and reliability is demonstrated, Tesla can simply just redraw the geofence.
Geofence Size
Tesla went from approximately 19.7 sq mi (51 sq km) to 42.07 sq mi (109 sq km)in just 22 days, following the initial launch and safety validation. Within a few short days of launch, we began seeing the first Tesla engineering validation vehicles, hitting Austin’s downtown core, preparing for the next phase.
The larger footprint means more utility for riders, and that’s big, especially since the new service area is approximately four square miles larger than Waymo’s established operational zone in the city.
Highways and Fleet Size
The new territory enables longer and more practical trips, with the longest trip at tip-to-tip taking about 42 minutes from the southern edge of the old geofence to the northern edge of the new geofence. For now, Tesla has limited its fleet to operating exclusively on surface streets and does not use highways to complete its routes.
We also don’t know if Tesla has increased the vehicle fleet size quite yet - but if they’re intending to maintain or reduce wait times for even the early-access riders, the fleet size will easily need to be doubled to keep up with the new area.
This video clip shows the @robotaxi follows the Interstate (I-35) but does not take the highest.
Perhaps the most telling bit about how fast Tesla is expanding is that they’re already laying the groundwork for the next expansion. Validation vehicles have been spotted operating in Kyle, Texas, approximately 20 miles south of the geofence’s southern border.
Robotaxi Validation vehicles operating in Kyle, Texas.
Financial_Weight_989 on Reddit
This means that while one expansion is being rolled out to the public, Tesla is already having its engineering and validation teams work on the next expansion. That relentless pace means that if this keeps up, Tesla will likely have a good portion of the Austin metropolitan area - the zone they’ve applied for their Autonomy license for - serviceable by the end of 2025.
The pilot? A success. The first expansion? Done. The second expansion? Already in progress. Robotaxi is going to go places, and the next question won't be about whether the network is going to grow. Instead, the new questions are: How fast, and where next?
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