TLDR
- Tesla begins fully autonomous robotaxi rides in Austin without safety monitors for first time since June 2025 launch
- Musk promises widespread U.S. robotaxi network by end of 2026 despite history of missed deadlines
- Austin fleet operates 30-50 vehicles, far below Musk’s previous 500-vehicle target for 2025
- Barclays increases price target to $360 while maintaining Equalweight rating after driverless milestone
- Tesla competes against Waymo’s five-market presence and faces consumer safety concerns
Tesla removed safety monitors from its Austin robotaxi fleet this week. The move marks the first fully autonomous rides since the service started in June 2025.
CEO Elon Musk announced the news on X. He congratulated the Tesla AI team and promoted the company’s AI hiring efforts.
The driverless launch happened about one month after Tesla began testing without safety drivers in mid-December. Only a few vehicles currently operate unsupervised. The rest of the fleet keeps safety monitors on board.
Ashok Elluswamy, Tesla VP of AI software, said the ratio of unsupervised vehicles will grow over time. The company plans to gradually expand the driverless portion of its fleet.
Latest Timeline from Davos
Musk spoke at the World Economic Forum in Davos on Thursday. He claimed Tesla’s robotaxis will be widespread across the U.S. by the end of this year.
The prediction follows a pattern of missed targets. In 2019, Musk said he was “very confident” about a 2020 rollout. In July 2025, he predicted service would reach half the U.S. population by year-end.
Last October, Musk targeted 500 Austin robotaxis by the end of 2025. He revised that number down to 60 by November.
Seven months after launch, Barclays reports Tesla operates approximately 30-50 total vehicles in Austin. Only about 10 run at the same time.
Small Fleet, High Demand
Robotaxi availability remains limited in Austin. Barclays points to high demand and small fleet size as the main constraints.
Tesla previously stated at a November conference that removing safety monitors was necessary before scaling. The labor costs made expansion too expensive otherwise.
The company launched a San Francisco ride-share service, but those cars have human drivers. Tesla hasn’t obtained California permits for driverless operation on public roads.
California regulators found Tesla engaged in deceptive marketing about driverless capabilities late last year.
Competition and Skepticism
Waymo operates in five U.S. markets and just launched in Miami. Amazon-owned Zoox entered the market in 2025. Baidu’s ApolloGo dominates China.
U.S. consumers remain wary. Electric Vehicle Intelligence Report surveys show strong skepticism about robotaxis. Safety tops the list of concerns.
Analyst Action
Barclays raised its Tesla price target to $360 from $350. The firm kept its Equalweight rating.
Tesla trades at $449.36 with a P/E ratio of 308.95. InvestingPro suggests the stock may be overvalued.
At Davos, Musk also said Tesla would sell Optimus robots to the public by end of 2027. He predicted AI might surpass human intelligence by the end of this year or next.
Tesla began testing vehicles without safety drivers in mid-December before launching fully driverless service in Austin.
