Tesla Explores Austin for Driverless Fleet Launch, as Early as Next Year

Tesla is in preliminary discussions with the city of Austin regarding the deployment of its autonomous vehicle technology, potentially bringing driverless fleets to Texas roads as early as 2024, reports Bloomberg.

Emails obtained by Bloomberg through public records requests reveal that a Tesla employee has been communicating with Austin's autonomous vehicle task force since at least May. The correspondence aims to establish safety protocols for Tesla's vehicles, as the company evaluates Austin as a potential launch site for its driverless service in Texas.

"Tesla is still working to strategically find a city within Texas to deploy… The city of Austin is obviously on our roadmap, but has not yet been decided where we will deploy first as we have many options available," a Tesla employee stated in a November email.

This move is crucial for Tesla, as CEO Elon Musk has increasingly focused the company's future on autonomous technology and robotaxis. However, securing necessary approvals for such a deployment could take several years, while competitors have already begun operating driverless vehicles in select cities.

Tesla unveiled a prototype of its driverless Cybercab at a robotaxi event in October, also announcing plans for an "unsupervised version" of its driver-assistance technology in California and Texas next year. This announcement, however, left investors with many unanswered questions about timelines and the transition to fully autonomous vehicles, leading to a significant stock price drop.

Musk later clarified on an investor call that the company aims to launch a rideshare service to the public in California and Texas using existing vehicle models.

Tesla's initial outreach to Austin predates its robotaxi event, expressing interest in joining the city's autonomous vehicle task force. The company has stated its commitment to meeting Austin's safety standards and providing training for first responders on how to interact with the vehicles.

Austin's autonomous vehicle task force, established last year, is designed to facilitate communication and gather feedback on the emerging technology. The group works with various autonomous vehicle companies, including Waymo, Volkswagen, and Zoox, to establish safety protocols and training procedures.

Tesla's FSD (Full Self-Driving) feature, while currently requiring driver supervision, is projected by Musk to operate without supervision in Model 3 and Y vehicles later this year. However, Tesla has a history of exceeding product development timelines, particularly in the area of self-driving technology.

Tesla recently conducted a training session in Austin for first responders on its autonomous vehicle technology. Emails indicate that this training could influence the company's deployment strategy. Prior to the event, Tesla confirmed that it was not currently testing on public roadways in Texas, only on its Austin gigafactory campus, and would notify authorities of any changes.

Musk has previously indicated that Tesla is already pilot testing rideshare technology in the Bay Area using Tesla employees and safety drivers. A similar approach could be utilized in Texas.

Tesla's early moves in Austin and California come as Musk advocates for nationwide deregulation of autonomous vehicles, a potential priority under the incoming Trump administration. Texas, with its relatively lenient regulations, presents fewer regulatory hurdles for Tesla, requiring only insurance, compliance with traffic laws, and video recording equipment. Robotaxis in Texas require separate licensing, and Tesla is yet to be listed as a licensee by the Texas Department of Licensing and Regulation.

General Motors' recent decision to halt its robotaxi operations in Austin by its Cruise subsidiary, citing high costs and a shift in business priorities, highlights the challenges and complexities of deploying autonomous vehicle technology. Cruise's previous testing in Austin had also encountered issues, including traffic jams and vehicle malfunctions.

Austin Mayor Kirk Watson has expressed some skepticism towards the technology, particularly regarding Cruise, stating in March that while autonomous vehicles hold promise, they are not yet fully developed. He encouraged companies to proactively engage with the city, which has long served as a testing ground for autonomous vehicle technology.