Skip to site menu Skip to page content

Texas legislators urge Tesla to delay robotaxi launch in Austin

Tesla's valuation largely depends on the launch and success of its robotaxi and humanoid robot projects.

aranyamondal June 19 2025

A group of Democratic lawmakers from Texas have requested Tesla to postpone the launch of its anticipated robotaxi service in Austin, citing public safety and trust concerns.

The lawmakers suggest waiting until September, aligning with the introduction of new autonomous-driving legislation.

The lawmakers' letter, sent on Wednesday, advises that delaying the service, which CEO Elon Musk hinted could start as early as this Sunday, would be in the public's best interest.

They have also requested that Tesla provide "detailed information" on compliance with the upcoming state law if they proceed with the launch this month.

Last year, Musk positioned Tesla's future on the success of autonomous-driving technology, shifting focus from the rapid growth in electric vehicle sales. Tesla has not yet commented on the letter from the lawmakers.

Musk previously announced plans for "autonomous ride-hailing for money in Austin," which have been under intense scrutiny from investors and analysts.

The majority of Tesla's market value is believed to hinge on the success of the robotaxi and humanoid robots, which are yet to be launched.

Under current Texas law, autonomous-vehicle companies can operate freely provided they meet registration and insurance requirements.

The new legislation, which awaits the governor's signature, will require companies to seek authorisation and could lead to permit revocation if the vehicles are deemed a public danger.

It also mandates that companies provide information for emergency situations involving their vehicles.

Musk has been sparse with details regarding the Austin robotaxi rollout, mentioning only that it would start with 10 to 20 Model Y vehicles in "the safest parts of Austin."

The specifics of passenger selection, ride charges, operational areas, and the extent of remote vehicle monitoring have not been disclosed.

Uncover your next opportunity with expert reports

Steer your business strategy with key data and insights from our latest market research reports and company profiles. Not ready to buy? Start small by downloading a sample report first.

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close