Look, no driver: Tesla’s robotaxi rolls out, 4 reasons why it matters

Tesla fanatics and tech analysts have long awaited the day when a Tesla could drive itself — with no one behind the wheel on public roads. 

That day has finally arrived, sort of.

On June 10, 2025, a black Model Y bearing the new “Robotaxi” wordmark (on the front doors) was spotted on public roads in Austin, Texas – without a driver in the seat, followed closely by a “chase” vehicle. 

Historic shift

The footage, posted by Tesla bull Sawyer Merritt, indicates the vehicle confidently navigating intersections. 

Elon Musk confided that this is indeed a standard factory Tesla Model Y running on the latest Full Self‑Driving (FSD) software, requiring nothing more than cameras, and a software update to activate driverless operation.

Musk called it “beautifully simple design,” stressing on Tesla’s vision where every new Model Y dual‑purpose either as a personal vehicle or a “robotaxi” with just a software flick.

Tesla's AV rollout will begin modestly — 10 to 20 Model Ys operating in “geofenced” zones, i.e. it can’t go beyond a certain pre-defined area.

This fleet will come under close remote monitoring, too. Tesla then plans to rapidly include employee invites from June 12 and consumer access soon after.

Musk also mentioned cars will soon self‑drive directly from factories to customers’ homes beginning June 28, 2025. 

#1. Industry momentum, urban impact

Austin, Texas is already home to other robotaxi players like Waymo. Tesla is a bit of a latecomer. In the AV space, there’s already Uber, Lyft, DiDi, Grab, Ola, Yandex, Lime, Jump, Wind, Bird, Zipcar, Car2Go. 

Tesla’s entry has outsized implications.

And it’s got nothing to do with its controversial CEO; rather it has a lot to do with its ability to mass produce – and mass customise – self-driving vehicles, thanks to AI.

It signals a consolidation in electric AV fleets. 

According to UNESCO, AV could help significantly reduce traffic accidents, cut congestion, and shift personal vehicle ownership toward on‑demand services.

The UN agency urges the adoption of innovative shared mobility services, autonomous vehicles, and electric vehicles, while also addressing the challenges associated with these technologies.  

#2. A leap in autonomy — but is it for real?

Though Tesla claims the cars are now fully self-driving (SAE Level 4/5), existing systems like Autopilot and FSD currently function at Level 2, requiring human supervision.

Autonomous driving tech has advanced dramatically in recent years.

A 2023 study that analysed 7.1 million fully driverless miles on Waymo (no human safety driver) in Phoenix, San Francisco, and Los Angeles shows Waymo recorded 0.6 crashes with any injury per 1 million miles (pmm) vs 2.8 pmm for humans, an 80% lower injury crash rate.

Tesla claims its self-driving software is already "10 times safer" than human drivers.

Still, questions about safety, technical feasibility and public acceptance lingers. 

There are ethical and practical questions too: Who takes responsibility in case of accidents? Should regulators mandate transparency? Who’s accountable for the algorithm used in AV?

Beyond that, there are broader societal impacts of autonomous vehicles, with experts urging for a framework that prioritises fairness, safety, and trust.

The jump to true autonomy raises critical questions around regulation, transparency, and AI accountability. 

In an article published in Journal of Technology Ethics (2021), Lee Vincent (2021) highlighted concerns about the potential for “AI bias” and algorithmic accountability.

#3. Trust, sentiment, and safety concerns

Public perception of autonomous vehicles remains cautiously optimistic, especially when companies like Tesla attach their name to radical leaps. 

Research analysing social media sentiment finds that discussion of “Tesla” is associated with positive attitudes toward AV technology — though concerns about pedestrians, safety, and “blind spots” linger. 

Moreover, researchers led by Qiyuan Zhang of the Cardiff University Centre for AI, Robotics and Human-Machine Systems (IROHMS), UK published (2024) pointed out that road accidents involving autonomous vehicles (AVs) will not only introduce legal challenges over liability distribution but also generally "diminish" public trust.

This could slow down its initial adoption and call into question the continued adoption of the technology. 

“Understanding the public’s reactions to such incidents, especially the way they differentiate from conventional vehicles, is vital for future policy-making and legislation, which will in turn shape the landscape of the autonomous vehicle industry,” the researchers pointed out.

Another study, prepared by the World Bank, focussed on the technology-enabled “sharing economy”, which has permeated different sectors of our lives, including transportation – such as Uber, Lyft, DiDi, Grab, Ola, Yandex, Lime, Jump, Wind, Bird, Zipcar, Car2Go.

The bank argues that theese technologies are "essential" for tackling rapid urbanisation, traffic congestion, and climate targets.

By 2030, they estimate 15% of vehicles could be fully autonomous, and up to 50% will have advanced driver-assistance systems (ADAS). AVs could reduce traffic accidents by nearly 90%, while greater electrification and connectivity are also key forces

#4. Regulations

AI experts highlight the need for transparent, interpretable decision-making in AVs. This, they said, would enable regulatory approval and public trust. 

The case of Waymo could point in the right direction.

Researchers led by Kusano et al. (2023, arXiv) studied 7.14 million miles driven by Waymo’s fully driverless cars (no safety driver) in Phoenix, San Francisco, and Los Angeles.

They compared Waymo's performance to human drivers using insurance and police data.

Results: Waymo scored 0.6 incidents per million miles (IPMM), while humans recorded 2.8 IPMM, or a 80% fewer injury crashes. In terms of police-reported crashes (any kind), Waymo clocked in 2.1 IPMM while humans: 4.68 IPMM, or 55% fewer incidents.

In these three cities (Phoenix, San Francis and LA), Waymo’s self-driving cars were significantly safer than human drivers, showing strong potential for safer roads in controlled environments.

Toyota’s own safety record with FSD, however, has drawn critiques. Moreover, Lee Vincent’s ethics analysis questions Tesla's readiness to market systems that may "mislead" users about their true capabilities.

Tesla’s mass‑customisable model — using its existing vehicle lineup rather than bespoke prototypes like the Cybercab — could give it a cost advantage. 

Yet S&P Global warns the mass adoption of Level 4/5 autonomy is still "years away".

Regulatory validation, however, remains a key hurdle. 

Pivot to ride-hailing?

Tuesday’s sighting in Austin signals Tesla’s pivot from maker of EVs to pioneer of autonomous ride-hailing. 

While experts anticipate a controlled rollout this month — 10–20 cars, remote supervision, limited zones — Musk’s long‑term vision of 1,000+ robotaxis in a few months, and over 1 million by end‑2026, faces challenges both ethical and technical.

Can Tesla’s camera‑only, black‑box AI-powered fleet earn public trust? 

Will regulators permit full autonomy? Will Tesla’s gamble redefine urban mobility—or expose new risks? 

What’s clear is this: with no one at the wheel, the driver is the car — and the world will be watching.