Tesla announced its third expansion of the Robotaxi service area in Austin, Texas, increasing the geofence to over 150 square miles. This follows the initial launch on June 22, 2025, with 10 to 20 vehicles, and subsequent expansions that doubled the area to 80 square miles by August 4, 2025. The latest update allows Robotaxis to operate in additional western suburbs, including Bee Cave, approximately 25 miles from the original zone, as confirmed by validation testing spotted over the weekend. The fleet now includes modified Model Y vehicles equipped with advanced Full Self-Driving (FSD) software, with plans to scale operations rapidly. Pricing remains dynamic, with fares starting at $4.20, though recent updates introduced adjustments based on demand, as noted by CEO Elon Musk on social media. The expansion includes safety measures such as avoiding adverse weather and difficult intersections, with teleoperators monitoring remotely. Tesla aims to increase the fleet size, with over 100 units targeted for the Bay Area following its July 30, 2025, launch, and similar growth planned for Austin. The company reported smooth performance during trials, with users noting human-like navigation on bumpy and narrow roads. This move aligns with Tesla’s goal to expand to multiple U.S. cities by year-end, pending regulatory approvals, and supports a projected production of the Cybercab robotaxi starting in 2026. The Texas Department of Motor Vehicles recently granted Tesla a rideshare license, effective for public access next month.
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