Tesla to Launch Robotaxi Service in Austin, But With Cautious Approach

Tesla is gearing up to launch its long-promised robotaxi service in Austin, Texas next month. However, the company is taking a more cautious approach than CEO Elon Musk has previously suggested.

According to Musk, the initial robotaxi test in Austin will be "geofenced" to specific areas that Tesla deems the "safest" for its self-driving technology. The company's vehicles "are not going to take intersections unless we are highly confident [they're] going to do well with that intersection, or it'll just take a route around that intersection," Musk told CNBC.

This represents a shift from Musk's past claims that Tesla would be able to deploy a general purpose self-driving solution that could operate anywhere without human supervision. The use of geofencing, a common practice in the autonomous vehicle industry, means Tesla's robotaxis will be restricted to certain pre-determined areas.

As part of its "paranoid" approach, Tesla will also have employees remotely monitoring the initial fleet of around 10 Model Y SUVs equipped with the "unsupervised" version of its Full Self-Driving software. Musk says these vehicles will be driving without any safety operators inside.

The cautious rollout in Austin is likely a response to the challenges Tesla has faced in developing reliable, fully autonomous driving capabilities. While the company has touted its progress, its self-driving tech has also faced scrutiny and regulatory hurdles.

Musk said Tesla plans to attempt similar robotaxi trials in California and potentially other states later this year, but the company will take a measured approach, confirming the system is working well before scaling up the service.

This conservative strategy contrasts with Musk's past bold predictions about Tesla's self-driving capabilities. But it reflects the realities of bringing complex autonomous driving technology to market safely and responsibly.