Tesla’s Bold Bet: Robotaxis Coming Sooner Than You Think—But Can They Deliver?

Tesla is once again steering into uncharted territory, announcing plans to launch a commercial robotaxi service in the United States by mid-2025. The upcoming product, a by the company is set to debut in Austin, Texas.

During the company’s latest earnings call, CEO Elon Musk revealed that an initial fleet of 10 to 20 fully self-driving Model Y vehicles will begin operating as paid ride-hailing units as early as June this year.

Also Read: Tesla Robotaxis by June? Musk Turns to Texas for Hands-Off Regulation | Republic World

Unlike Tesla’s long-teased Cybercab—an entirely new vehicle platform designed without a steering wheel or pedals—this early pilot will rely on modified versions of the existing Model Y.

“This won’t be a demo. This will be real-world, paid usage of Tesla Full Self-Driving technology,” Musk said, underscoring the company's intent to move beyond trials and into tangible commercial rollout.

Tesla’s announcement has reignited debate among investors and industry observers, many of whom have grown wary of the company’s repeated delays in delivering fully autonomous functionality.

Though Tesla’s Full Self-Driving (FSD) suite has been in beta version for years, critics point to the absence of third-party safety validation and the lack of regulatory approval for unsupervised autonomous driving in most jurisdictions.

“It’s a bold timeline—June is around the corner,” said Alex Cole, an automotive analyst at EV Research Group. “The key challenge isn’t the technology anymore, but whether regulators, insurers, and the public are ready for truly driverless cars.”

Wall Street has responded with a mix of enthusiasm and restraint. Tesla shares rose modestly following the announcement, reflecting optimism that the company is doubling down on innovation. Yet, questions remain about profitability, timelines, and whether Tesla can finally meet its self-imposed deadlines.

"Investors have heard these promises before," said Laura Kim, a senior portfolio strategist at Everstone Capital. “The differentiator this time will be execution. If Tesla can get even a small fleet running profitably and safely, it could unlock massive value.”

Whether Tesla can deliver on its robotaxi vision remains to be seen. But one thing is certain: the countdown to a driverless future just got a little shorter—and the whole world will be watching.