Tesla Commences Model Y Tests in Austin, Texas as it Prepares for June Robotaxi Launch

Tesla has already rolled out Model Y driverless testing in Texas without incidents, Reuters reported. Tesla ran the tests on public roads without a human on the driver’s seat for the first time. A Tesla engineer rode on the passenger seat.

The June 12 Target

Tesla’s Model Y testing in Austin is part of the EV manufacturer’s plan to launch its robotaxi service by the end of June this year. Earlier this year, Tesla CEO Elon Musk said the robotaxi launch would feature 10 or 20 Model Y cars.

“For the past several days, Tesla has been testing self-driving Model Y cars (no one in the driver’s seat) on Austin public streets with no incidents. A month ahead of schedule. Next month, first self-delivery from the factory to the customer,” Musk posted on X.

Although Musk did not reveal the actual date for Tesla’s self-driving car 2025 launch, Bloomberg reported June 12 as the launch date. Sources close to the company say this date has been discussed internally and may change. If this happens, the launch will be a significant milestone in Musk’s broad plan of reshaping Tesla around AI and driverless vehicles.

Positive Stock Reaction

Tesla stocks reacted positive to Elon Musk’s AI car announcement on May 29, gaining 3% in pre-market trading. The stocks had dipped by 12% since the beginning of the year. Globally, Tesla sales have dipped due to fierce competition from other EV makers like China’s BYD and Xpeng.

In Europe, BYD outsold Tesla in Europe in April. A report released by research firm JATO Dynamics, showed that BYD sold 7,231 battery-powered electric vehicles in European countries against Tesla’s 7,165 units in the month of April. Demand for Tesla was hurt by the company’s aging model lineup as well as Elon Musk’s political associations.

The drop in sales has also been triggered by the backlash that Musk has faced due to his work with President Donald Trump at the Department of Government Efficiency (DOGE) and his far-right political views.

On May 28, Musk announced his exit from the Trump administration where his leadership was characterized by a clamorous efficiency drive. The drive affected multiple federal agencies and still failed to deliver the savings he targeted.

Tesla’s Future Business

Musk said the robotaxi will be key to Tesla’s business in future. Initially, Tesla will use consumer vehicle models before incorporating Cybercabs in its self-driving robotaxi fleet. The Cybercab comes with no pedals or steering wheel. Tesla unveiled it last year in a huge event in California. At the time, the EV maker allowed event attendees to ride in Cybercab prototypes on routes within private land.

Headquartered in Texas, Tesla did this to circumvent permit requirements. Texas rules on autonomous driving are relatively relaxed. In this state, regulation of self-driving vehicles is similar to other kinds of passenger vehicles. However, the state requires self-driving vehicles to have cameras, insurance, and be capable of following traffic laws.

Rideshare services in the state are regulated by the Texas Department of Licensing and Regulation. Currently, this regulatory body has not listed Tesla among rideshare licensees. In Austin, self-driving vehicles are not regulated at all. However, the city has established a task force to coordinate with autonomous vehicle firms, including Tesla.

Being the state capital, Austin has become an important region for the growing self-driving cab industry. Already, Alphabet-backed robotaxi firm Waymo is operating in the city. Increasingly, Tesla cars with manufacturer plates have become a common sight in the southeast parts of the company as the EV maker expands its testing rides with safety drivers.