The Tesla Robotaxi network will benefit from U.S. President Trump’s new self-driving rules.

The Trump administration is loosening regulations to support U.S. automakers like Tesla in developing self-driving cars. The United States government aims to outpace Chinese competitors in autonomous vehicle development. The policy shift, which was announced by U.S. Transportation Secretary Sean Duffy on Thursday, targets federal safety rules and crash reporting requirements to accelerate autonomous vehicle innovation.

The Transportation Department outlined exemptions allowing U.S. companies to bypass specific safety regulations for self-driving vehicles used in research, demonstrations, and non-commercial settings. Previously, such exemptions were applied mainly to foreign vehicles with standards different from those in the United States. The department also plans to streamline crash reporting rules, which Elon Musk has criticized, and move toward a unified national standard, replacing fragmented state regulations.

“We’re in a race with China to out-innovate, and the stakes couldn’t be higher,” said Transportation Secretary Sean Duffy in a statement. “Our new framework will slash red tape and move us closer to a single national standard.”

The regulatory changes align with Tesla’s ambitions in autonomous driving, particularly related to its Robotaxi network. On Wednesday, Musk confirmed during a Tesla investor call that the company is prepared to launch self-driving Tesla robotaxis in Austin, Texas, by June. Tesla’s Full Self-Driving (FSD) technology, a cornerstone of its robotaxi plans, could benefit from the eased rules, expediting testing and deployment.

The exemptions are designed to level the playing field for U.S. automakers, giving Tesla and others more flexibility to innovate. The administration aims to foster a competitive environment against Chinese firms advancing in autonomous vehicle technology by simplifying crash reporting and harmonizing regulations. Industry observers note China’s aggressive push for self-driving tech has pressured U.S. policymakers to act.

Tesla’s Austin Robotaxi rollout will be a key testbed for its FSD software under the new regulatory framework. The company has been refining FSD, with recent updates showcasing improved performance. The Transportation Department’s move could accelerate Tesla’s timeline for scaling its autonomous fleet, a critical step toward Musk’s vision of the Robotaxi network.

The policy shift underscores a broader U.S. strategy to maintain technological leadership. With Tesla at the forefront, the loosened rules could reshape the self-driving landscape, positioning American automakers to challenge global rivals.

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The automaker did not specify exactly how long it has been operating the fleet, which uses the company’s Full Self-Driving (Supervised) suite, but it did indicate that it has completed over 1,500 trips, totaling 15,000 miles of driving.

FSD Supervised ride-hailing service is live for an early set of employees in Austin & San Francisco Bay Area.

We’ve completed over 1.5k trips & 15k miles of driving.

This service helps us develop & validate FSD networks, the mobile app, vehicle allocation, mission control &… pic.twitter.com/pYVfhi935W

— Tesla AI (@Tesla_AI) April 23, 2025

As seen in the video shared by the company, there is a human driver still responsible for keeping tabs on the car and its movements. It is not the version that Tesla plans to eventually roll out in June, which would be completely unsupervised.

Tesla said that using this service has helped develop and validate Full Self-Driving networks. It will also be used to create a mobile app that will facilitate ride requests, vehicle allocation, mission control, and remote assistance operations.

The app appears to be somewhat similar to the images Tesla shared of a mock-up version of the platform last year.

Right around this time in 2024, Tesla shared images of what would be the ride-hailing app for the company, enabling passengers to request a ride from a driverless robotaxi:

Tesla gives first look at Robotaxi-powered ride-hailing service app

We also know, according to Tesla App Updates on X, that Tesla will simply integrate this ride-hailing portion of the platform directly into the app the company already operates. There will be no dedicated app for requesting a ride:

Tesla will integrate Robotaxi ride-sharing directly into the app, there will be no specific and separate app for ride-hailing. https://t.co/bhq3aZcUcc pic.twitter.com/Rb8fFJdh2b

— TESLARATI (@Teslarati) April 23, 2025

The company said in 2024 when teasing the app:

“We have been investing in the hardware and software ecosystems necessary to achieve vehicle autonomy and a ride-hailing service. We believe a scalable and profitable autonomy business can be realized through a vision-only architecture with end-to-end neural networks, trained on billions of miles of real-world data.”

Tesla said it still remains on track to launch a pilot version of the Robotaxi program in Austin in June, something the company has reiterated several times since the start of the new year.

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Tesla said earlier this year that it was in talks with the City of Austin to launch its first Robotaxi rides, and it planned to launch the platform in June.

This has been a widely discussed timeline in the community, with some confident in the company’s ability to offer it based on the progress of the Full Self-Driving suite.

However, others are skeptical of it based on Tesla’s history of meeting timelines, especially regarding its rollout of FSD.

Nevertheless, Tesla was asked when it would be able to offer Robotaxi rides and where, and it clearly is not backing down from that June date:

In Austin,

— Tesla (@Tesla) April 18, 2025

It is getting to a point where Tesla is showing incredible confidence regarding the rollout of the Robotaxi in June. We have not seen this kind of reiteration regarding the rollout of something regarding autonomy from Tesla at any point in the past.

CEO Elon Musk has even been increasingly confident that Tesla will meet its target. Earlier this week, he said the vehicles will be able to roll off production lines and drive themselves straight to a customer’s house:

Elon Musk continues to push optimistic goal for Tesla Full Self-Driving

There could be some discussion of an acceptable grace period, as the timeline for the Robotaxi rollout could still be considered a success, even if it were a month or two late. However, if it were pushed back further into 2025 or even 2026, skepticism regarding these timelines would continue to persist.

As of right now, it seems Tesla is extremely confident it will meet its goal.

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Tesla has applied for a Transportation Charter-Party Carrier, or TCP, permit, which would allow it to own and control vehicles in a ride-hailing service.

Tesla applied for a “transportation charter-party carrier permit” from the California Public Utilities Commission, which would see the company own and control a fleet of ride-sharing vehicles in the Golden State.

It will use human drivers for the application. It did not apply for what the California Public Utilities Commission calls a Transportation Networth Company permit, or TNC, which, according to the agency, provides prearranged transportation services for compensation using an app, such as Lyft and Uber.

Bloomberg was the first to spot the application, which was filed in November 2024, its report said.

It could eventually lead to participation in the CPUC’s Autonomous Vehicle Passenger Service, as the TCP is a prerequisite to go into that program.

However, as of now, Tesla has not applied to participate in the Autonomous Vehicle Service Program, and even if their current application was granted, it would not allow the company to offer drivered or driverless autonomous vehicle rides to the public in any way.

The move also is a direct blow to competitors like Uber, Waymo, and others, who offer ride-hailing and/or autonomous vehicle transportation programs.

If approved, Tesla would gain the same type of permit used by Waymo, the report confirmed.

Of course, this is all pending regulatory approval, and Tesla is not planning to start its self-driving offerings in California, but Texas, instead.

During Tesla’s Q4 2024 Earnings Call, CEO Elon Musk unveiled plans for the company to launch the program in Texas this year:

“So, we’re going to be launching unsupervised full self-driving as a paid service in Austin in June. So, I talked to the team. We feel confident in being able to do an initial launch of unsupervised, no one in the car, Full Self-Driving in Austin in June.”

He went on to say that Tesla would launch this in “many cities in America by the end of this year” in early February. Still, a lot of work is left to do, because there have been no approvals for Tesla to begin these operations in Austin or any other city.

Tesla does plan, however, on rolling out the Cybercab it unveiled in early October in Los Angeles as the first vehicle to give driverless rides in Austin. Tesla’s Head of Design Franz von Holzhausen and VP of Vehicle Engineering Lars Moravy confirmed in a recent interview with Jay Leno that the Cybercab would be rolling around the streets of Austin in June:

?Tesla Cybercab rides are coming to Austin in June and potentially California shortly thereafter

This would be a huge development for Tesla moving into late 2025 and beyond https://t.co/bJB7aRXyO0 pic.twitter.com/6P2csgYlqr

— TESLARATI (@Teslarati) February 27, 2025

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“We remain bullish on Tesla, Inc. because we’re optimistic as far as regulatory approvals and getting a regulatory framework related to autonomous driving in the United States.

“I think that will come sooner rather than later. It became clear after Tesla Robotaxi Day back in October that the story was all about autonomous driving going forward, and you look at the value of the company in our view, it’s still trading at a fraction of the market opportunity here, which we estimate to be, you know, north of $5 trillion, if you look at the global autonomous driving opportunity. So, you know, we’re buyers on this dip that we’ve seen in the stock this week,” commented Nelson while on Schwab Network.

Would you rather:
-Be the first to take delivery of the Tesla Robotaxi
OR
-Be the first human to travel in Starship to Mars

Let us know down there ? pic.twitter.com/Po3V0UKiQo

— TESLARATI (@Teslarati) October 27, 2024

Morgan Stanley analysts agree with Nelson and CFRA Research. Last month, Morgan Stanely forecasted an $800 bull case scenario for Tesla based on the potential of its robotaxi business.

Tesla expects to launch robotaxi–with unsupervised self-driving– paid services in Austin by June 2025. During the Full Year and Q4 2024 Earnings Call, Elon Musk predicted that robotaxi services would be available across multiple cities in the United States by the end of this year.

However, not all Tesla analysts believe the robotaxi fleet will benefit the company’s business. Gary Black predicts that less than 50% of Tesla owners will join the fleet. He argued that Tesla owners would be against including a personal vehicle in a publicly-used fleet.

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That continued again today as Musk made a crazy prediction for what he believes will happen with Tesla’s Robotaxi fleet by the end of this year.

During Tesla’s Q4 2024 Earnings Call in late January, Musk confirmed that the company would launch an autonomous ride-hailing service in Austin, Texas, sometime in June:

“So, we’re going to be launching unsupervised full self-driving as a paid service in Austin in June. So, I talked to the team. We feel confident in being able to do an initial launch of unsupervised, no one in the car, full self-driving in Austin in June.”

Musk confirmed that the company was in discussions with the City of Austin, something that Bloomberg had reported several weeks before the Earnings Call had happened.

While Musk is confident that the Tesla Full Self-Driving suite could operate anywhere in America, he said the company was “putting our toe in the water gently at first just to make sure everything is cool.”

Tesla to launch unsupervised Full Self-Driving as a service in Austin in June

He continued:

“So, we just want to be cautious. It’s not that it doesn’t work beyond Austin. In fact, it does. We just want to put our toe in the water, make sure everything is OK, then put a few more toes in the water, then put a foot in the water with safety of the general public as and those in the car as our top priority.”

However, Musk’s statements have already started to progress as he believes Tesla will launch autonomous ride-hailing to “many cities in America by the end of this year.”

And it only gets better from here.

Tesla is still on track to launch autonomous ride hailing in Austin in June and roll out to many cities in America by the end of this year.

The threshold is achieving safety far in excess of the average human driver.

Ultimately, autonomous… https://t.co/e81v28agSy

— Elon Musk (@elonmusk) February 10, 2025

We know Musk to be pretty optimistic, especially when it comes to Full Self-Driving. For years, he has said that Tesla will solve autonomy “by the end of the year,” only to come up short and keep customers waiting.

However, if Tesla can get some cars on the road and operate an efficient, safe, and groundbreaking ride-hailing suite that does not require human intervention in Austin, things could move along to other cities relatively quickly, depending on the laws and regulations in certain jurisdictions.

There are ways to ensure that things go smoothly early on with things like teleoperation, for example, which is something that other companies have used.

Tesla starts hiring software engineers for robotaxi and Optimus teleoperations

For now, Tesla will focus on launching the ride-hailing service in Austin. If things go well, it could eventually spread to other areas, like California, which have been explicitly mentioned by Musk.

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It will be the first time Tesla will use a driverless service on roads anywhere in the world.

? BREAKING: Tesla is launching unsupervised self-driving as a paid service in Austin, Texas, in June

Elon Musk confirms this in during the Q4 Earnings Call

— TESLARATI (@Teslarati) January 29, 2025

The announcement follows Tesla’s launch of the Robotaxi Cybercab in October 2024, when it revealed plans to launch driverless rides in both Texas and California in 2025.

Musk said during the Q4 Earnings Call that Austin would be the first location because Tesla wants to “dip its toe in the water” and ensure safety before it launches a widespread self-driving effort that does not require a driver.

Tesla plans to expand this service to other cities before the end of the year. Musk believes this will happen before 2025, but he emphasized that Tesla needs to confirm that the probability of injury is low.

In December, Tesla began talking to the City of Austin regarding the operation of a Robotaxi fleet:

Tesla eyes first city for Robotaxi operation with preliminary talks

The driverless rides will be launched as a Service and will require payment from the rider as it will transport them from one place to another.

Musk said:

“We want to prove to ourselves and prove to regulators that the vehicles are unequivocally safer in autonomous mode than not. We’re not far off. Like, low single-digit months.”

Tesla will need to execute here as many years the company has said it would solve autonomy by the end of the year. This is perhaps the most enthusiastic Musk has been about the prospect of solving self-driving internally, but it needs to be noted that Tesla is rolling this out in a manner that is beneficial to everyone.

It will not be widely available until Tesla can prove it is safer than any other mode of automobile operation. This is why the company is pursuing a slow rollout of the service.

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Waymo is not resting on its laurels. A $5.6 billion investment from Alphabet, and a strategic partnership with Geely for custom vehicles, among other things, signal plans for further growth. The company also intends to expand to Austin, Atlanta, and even internationally into Tokyo, as noted in a CNBC report.

The Competition:

While Waymo is the runaway leader in robotaxis for now, the company is poised to meet some substantial competition.

• Tesla’s Ambition: Elon Musk’s Tesla, despite a history of missed deadlines, has made its robotaxi intentions very clear during the unveiling of the Cybercab and Robovan in October. While still without a commercial service, Tesla aims to leverage its existing vehicle fleet, like the Model Y and Model 3, for robotaxi operations, pending regulatory approval.
• Zoox’s Niche: Amazon’s Zoox, with its distinctive “toaster”-shaped shuttle, has made inroads by securing permits for public rides and expanding testing environments to include night and light rain conditions. Although not at Waymo’s scale, Zoox’s unique design and targeted expansion plan in cities like Las Vegas and San Francisco suggest that it could be a serious robotaxi player.
• The Cruise Conundrum: General Motors’ decision to close its Cruise robotaxi division, after investing $10 billion, underscores the challenges in this space. However, GM has noted that it will now focus on the development of “personal autonomous vehicles” instead of robotaxis.

The Market Dynamics:

• The global ride-sharing market, estimated at $123.08 billion in 2024, is projected to reach $480.09 billion by 2032, as per research from Fortune Business Insights.
• That’s a very lucrative market that is just waiting to be disrupted by autonomous robotaxi services.

The Bottom Line:

• Waymo’s lead in the robotaxi industry is clear, with tangible progress in service availability and technological adaptation.
• However, Tesla’s large fleet and scalability and Zoox’s Amazon backing signal that the race is on. As Tesla works to turn its vision into reality and Zoox expands its footprint, Waymo’s lead might be challenged in the coming years.

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At its Robotaxi unveiling event in October, Tesla said it planned to kick off fully autonomous ride-sharing operation in Texas and California as early as 2025. It has already started talks with local authorities in one of those states.

The company is now in touch with officials in Austin, Texas, according to a new report from Bloomberg. The publication saw emails between Tesla and Austin city officials that showed the talks had already started.

Tesla reveals design inspiration behind Cybercab’s gold color

However, they are in the earliest of stages, which means there are plenty of things to iron out before any true progress is made, including a date or terms of what the Robotaxi fleet may look like in terms of size and operation.

This would be quite different from what the company offers currently. Tesla drivers can currently use the company’s Full Self-Driving suite to navigate anywhere in a semi-autonomous fashion. While it does not require hands on the steering wheel, it does require a driver’s complete attention, and it is monitored through a cabin-facing camera.

What Tesla is aiming for with its Robotaxi fleet is totally different. This would not require anyone in the vehicle to pay attention or contribute anything to the vehicle in terms of its operation.

The vehicle would get the passengers from point A to point B without any human intervention, something that has been done with other companies in the past like Waymo.

However, these companies have used geofenced areas and teleoperation to keep these rides driverless. They are just confined to a certain area. Tesla does not want to use geofencing, but there has been speculation the company will use teleoperation in the early days of its Robotaxi fleet operation.

It would make sense for Austin to be the first city where Tesla operates the Robotaxi fleet. The company’s Gigafactory Texas is located just outside the city, and Tesla moved its Headquarters to Texas from Palo Alto, California in 2022.

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Kardashian is paid over two million dollars per post for promoting products from other companies due to her social media reach, which includes over 359 million followers on Instagram.

Earlier this month, skepticism and speculation regarding Kardashian’s potential relationship with Tesla started to catalyze as Kim put video and pictures of her with Tesla’s Optimus robot and the company’s recently revealed Cybercab Robotaxi on her social media pages.

Tesla Optimus’s busy week includes $10k action figures and Kim Kardashian

Last year, Kardashian was one of the first celebrities to obtain a Tesla Cybertruck. She also posted various images with the vehicle to her social media pages and had custom work done to the all-electric pickup.

The Cybertruck was one of the hottest vehicles for celebrities through the last few months of last year and into 2024. However, Kardashian’s posts with the Cybertruck were not candid photos taken by paparazzi, at least for the most part. They were taken with photographers and appeared to be images taken of her on wishes.

We speculated about what could possibly going on with Tesla and Kardashian recently, and we were confused as to why she seemed to have such unique privileges with the company’s products:

@teslarati What is going on between Tesla and Kim Kardashian?? #tesla #kimkardashian #teslacybertruck #fyp #teslaoptimus #optimus ♬ I’m a Fool (for U) – Rebecca Mardal

Because Tesla is so heavily against the idea of spending massive amounts of money on advertising, it seemed far from reality that it would use Kardashian, whose social media posts can cost companies over $2 million a pop, to gain publicity on things like Optimus and Cybercab — two products that are likely to gain visibility on their own simply because of their capabilities.

Tesla did not have to pay, according to her publicist, who revealed the information to The New York Times.

It seems Kardashian may have just simply had the special privilege to test some of Tesla’s most heavily sought-after products. Lucky her!

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