Musk's long-awaited robotaxi may finally launch today amid legal concerns
What's the story
Tesla is expected to launch its much-anticipated robotaxi service today in Austin, Texas. The service will use the Model Y SUV instead of the Cybercab, which is still in development. The move comes as CEO Elon Musk shifts his focus back to business after a controversial period involving the US President Donald Trump's administration.
Apology and preparations
Musk apologizes for his remarks
After a public fallout with Trump, Musk has apologized for some of his remarks. Meanwhile, Tesla's Texas operations have been preparing for the Austin launch. This is part of a larger push into autonomous technology and artificial intelligence (AI), which could potentially add more than $1 trillion in market cap, according to Wedbush analyst Daniel Ives.
Strategic location
Why Musk chose Austin for the robotaxi service launch
Musk has chosen Austin for the robotaxi service launch because of its business-friendly regulatory environment. The Texas Department of Transportation said, "Texas law allows for AV testing and operations on Texas roadways as long as they meet the same safety and insurance requirements as every other vehicle on the road." However, a new bill requires approval from the state's Department of Motor Vehicles before companies can operate without human drivers.
Compliance concerns
Letter from Democratic lawmakers to Tesla
The seven Democratic lawmakers who wrote the letter to Tesla are concerned about the company's compliance with the new law. They have asked Tesla to provide detailed information proving its compliance if it goes ahead with this weekend's launch. Despite these concerns, Musk had initially planned a June 12 launch but later delayed it due to safety concerns.
Service details
Service to be available in geofenced area
The robotaxi service will be available from 6:00am (local time) to midnight, initially on an invitation-only basis in a geofenced area. Musk has said that Tesla would start with just 10 autonomous vehicles in the first week but hopes to scale up to as many as 1,000 within months. The company also plans to expand this service to other cities like San Francisco, Los Angeles, and San Antonio.