May 21 2025 – Tesla CEO Elon Musk has confirmed, as reported by CNBC, that the company is set to deploy its autonomous taxis on the streets of Austin, Texas, by the end of June. However, the safety concerns surrounding Tesla’s Full Self-Driving (FSD) system are currently under investigation by U.S. regulators.
During an interview with CNBC, Musk revealed that Tesla plans to initially introduce around 10 autonomous taxis in specific areas of Austin. If the trial run proves successful without any incidents, the fleet could rapidly expand to thousands of vehicles.
“We’re not going to roll out across the entire Austin area initially. Instead, we’ll focus on the safest zones, setting up geographic fencing to limit operations to designated areas,” Musk stated. Following the Austin launch, Tesla intends to expand its autonomous taxi service to Los Angeles and San Francisco.
For Tesla, the successful testing of autonomous taxis is crucial, especially as Musk has shifted the company’s focus from developing a new, more affordable electric vehicle platform to launching autonomous taxi services and the Optimus humanoid robot amidst sluggish demand. Tesla’s valuation hinges significantly on this strategic move.
“In the long run, the only things that matter are autonomous driving and Optimus,” Musk told CNBC.
FSD Licensing
Nevertheless, the commercialization of autonomous vehicle technology has proven challenging. Stringent regulations and substantial investments have deterred many companies from pursuing this path. Despite ongoing scrutiny, companies like Waymo continue to advance their autonomous driving technologies.
Since October of last year, the National Highway Traffic Safety Administration (NHTSA) has been investigating collision incidents involving Tesla’s FSD system under low-visibility conditions. Last week, NHTSA requested Tesla to provide answers regarding the launch of its paid autonomous taxi service to evaluate the vehicles’ performance in adverse weather.
Musk indicated that Tesla is in negotiations with several major automakers to license the FSD system, which is expected to serve as the foundation for its autonomous taxi fleet.
Continued Leadership at Tesla
Earlier on Tuesday, Musk also expressed his commitment to leading Tesla for the next five years.
“Yes, without a doubt,” Musk stated during a video interview at the Bloomberg Qatar Economic Forum held in Doha.
