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Tesla Inc. will finally launch a long-promised commercial robotaxi service in June — starting in Austin, Texas — before expanding the ride-hailing network across the U.S. and globally, CEO Elon Musk told investors Jan. 29.
“The proof is in the pudding,” Musk said on Tesla’s fourth-quarter earnings call. “So, we’re going to be launching unsupervised Full Self-Driving as a paid service in Austin in June.”
In its financial report, Tesla said fourth-quarter profit fell, but revenue rose slightly.
Musk, who acknowledged broken past promises, said Tesla vehicles are already operating autonomously at its Fremont, Calif., factory, driving themselves off the assembly line to designated parking spots in a holding lot.
Tesla’s Full Self-Driving software is classified as an advanced driver-assistance feature that requires a human supervisor for safety. Musk previously predicted in 2019 that Tesla would have 1 million robotaxis on the road by 2020. Musk has been promising autonomous Teslas for a decade.
If successful, Musk’s latest prediction could mark a massive pivot for the EV maker from generating most of its revenue from vehicle sales to becoming the world’s largest robotaxi service. Musk has said autonomous vehicles will generate vastly more revenue and profits for Tesla than selling nonautonomous vehicles to consumers.
“This is not some far-off mythical situation,” Musk told investors and analysts. “It’s literally five to six months away.”
Elon Musk’s great expectations
He said 2025 would be Tesla’s most important year, 2026 would be “epic,” and 2027 and 2028 would be “ridiculously good.” Musk also predicted Tesla could be making 100 million humanoid robots within a few years. The Optimus robots use a version of Full Self-Driving software.
After testing its first robotaxi service in Austin this summer, Tesla plans to expand the network to major U.S. markets, including in California, by the end of the year, Musk said. Europe and China, which have more difficult regulatory regimes than the U.S., could see autonomous Teslas by the end of 2026, he added.
“We’re looking for a safety level that is significantly above the average human driver,” Musk said Jan. 29. “The standard has to be very high because the moment there is any kind of accident with an autonomous vehicle, that’s immediately worldwide headlines.”
In its fourth-quarter earnings report Jan. 29, Tesla said fourth-quarter net income fell 71 percent to $2.3 billion and its gross margin was impacted by sales incentives and discounts. Most of the net income decline came from a $5.9 billion one-time noncash tax benefit in fourth-quarter 2023, making for an unfavorable comparison.