Tesla’s Cybercab robotaxi is displayed during the AutoMobility LA 2024 auto show at the Los Angeles Convention Center in Los Angeles, November 21, 2024. © Robyn Beck / AFP
The launch – which comes as Musk refocuses on his business ventures following a controversial stint in Donald Trump’s administration – will employ the Model Y sport utility vehicle rather than Tesla’s , which is still under development.
The long-awaited launch follows the dramatic earlier this month in relations between Musk and Trump, which saw a cascade of bitter attacks from both men.
Since then, Musk has publicly for some of his statements, while his company’s Texas operation has readied the Austin push – part of a major drive on and artificial intelligence that Tesla bulls believe will yield huge profits.
This group includes Wedbush analyst Daniel Ives, who said autonomous technology could be a catalyst for potentially $1 trillion in additional market value or more.
“There are countless of the Tesla robotaxi vision with many bears thinking this day would never come,” said Ives, who predicted that Trump’s administration would clear roadblocks for Tesla and pivot from the recent “soap opera.”
“The golden era of autonomous for Tesla officially kicks off on Sunday in Austin,” Ives said in a note Friday.
Why did Tesla choose Austin for the robotaxi launch?
Members of SafeStreetRebel, a group of anonymous anti-car activists, placed traffic cones on a self-driving robotaxi to disable it in San Francisco, California on July 11, 2023. © JOSH EDELSON / AFP
In picking Austin for the debut of the autonomous vehicle (AV) service, Musk is opting for a US state known for its company-friendly approach to .
“Texas law allows for AV testing and operations on Texas roadways as long as they meet the same safety and insurance requirements as every other vehicle on the road,” the Texas Department of Transportation told AFP.
An Austin website listed six autonomous vehicle companies at various stages of operation: ADMT (Volkswagen), AVRide, Tesla, Zoox (Amazon), Motional (Hyundai), and (Alphabet/Google).
But the Texas legislature this year enacted a new bill that requires prior authorization from the state’s Department of Motor Vehicles before companies can operate on a public street without human drivers, a group of seven Democratic lawmakers said in a June 18 letter to Tesla.
Citing the enhanced system, the lawmakers asked Tesla to delay testing until after the law takes effect September 1.
If Tesla proceeds with the launch this weekend, “we request that you respond to this letter with detailed information demonstrating that Tesla will be compliant with the new law,” the letter said.