Tesla launched its long-awaited self-driving Robotaxi service in Austin on Sunday, providing a select group of enthusiasts with early access to livestreamed rides. The debut advances the electric-vehicle maker’s ambition to dominate the autonomous ride-hailing market.

Tesla employees accompanied riders as a safety precaution during initial runs. Prominent Tesla enthusiast Farzad Mesbahi described the ride as “super smooth” and “drama free.” Another tester, Chuck Cook, expressed amazement at the vehicle’s ability to execute a three-point turn and back into a parking space with precision.

The company’s artificial intelligence division, overseeing the project, emphasized the Robotaxi’s scalability, noting it requires no costly specialized equipment or extensive mapping. “It just works,” Tesla told Business Insider. Chief Executive Elon Musk set a flat $4.20 fare for early rides and outlined plans to expand to Los Angeles and San Francisco.

Musk, who in April forecast the Robotaxi service would “move the financial needle in a significant way” by mid-2025, faces competition from Alphabet's Waymo. The autonomous ride-hailing pioneer operates driverless services in Phoenix, San Francisco, Los Angeles, and Austin, with Atlanta, Miami, and Washington, D.C., slated for 2026.

The launch has drawn concern from some Texas lawmakers. Democrat state lawmakers last week urged Tesla to delay the debut until a new autonomous vehicle law takes effect in September, citing public safety and trust. 

Musk appeared pleasedwith the launch, lauding both Tesla’s software and chip design teams.