Musk says Tesla AI robotaxi now available in Austin for $4.20 flat fee

The burgeoning self-driving taxi industry signed on a new player this weekend as Tesla officially debuted its robotaxi service, the CyberCab, in Austin, Texas on Sunday.

Tesla CEO Elon Musk said on X the Tesla AI robotaxi launch began in Austin on Sunday afternoon with customers paying a $4.20 flat fee.

The company will operate invite-only robotaxi rides, operated by a few Model Ys, within a geofenced area of Austin during the launch, according to CNBC.

There will be “safety monitors” with the vehicles, Electrek reported, citing invitations. 

HOW MUCH HAVE MUSK’S TESLA AND SPACEX BENEFITTED FROM GOVERNMENT FUNDS? 

With the new debut, FOX Business takes a look at Tesla’s robotaxi plans and the operations of two other big names in the industry in the U.S. 

Tesla

Tesla’s entry into robotaxi services has been long awaited by investors and fans.

While the initial rollout will reportedly use Model Ys, the company has a CyberCab sedan with no steering wheel or pedals in the pipeline.

Tesla said in its first-quarter shareholder deck that volume production of the Cybercab is expected to begin in 2026. 

A prototype of the Tesla Cybercab in a showroom in the Mall of Berlin Nov. 20, 2024. (Hannes P Albert/picture alliance via Getty Images / Getty Images)

Musk unveiled the CyberCab and a planned Robovan designed to carry more passengers during an event in October. At the time, he said the CyberCab had a price tag of more than $30,000, FOX Business previously reported. 

A Tesla Cybercab on display during the ninth edition of the VivaTech technology startup and innovation fair at the Porte de Versailles exhibition center in Paris June 12, 2025. (Mustafa Yalcin/Anadolu via Getty Images / Getty Images)

The billionaire Tesla CEO has indicated in past earnings calls that Tesla owners will be able to allow their vehicles to be part of the robotaxi fleet when they don’t need them. 

He has his sights set on introducing Tesla’s robotaxi service to Los Angeles and San Francisco after Austin, CNBC reported. 

In April, Musk predicted the robotaxi service will “move the financial needle in a significant way” for the company, “probably around the middle of next year, second half of next year.” 

Waymo

Waymo got its start as the Google Self-Driving Car Project that Alphabet, the parent company of Google, subsequently turned into a subsidiary in 2016. 

The autonomous ride-hailing company offers driverless rides in four cities — Phoenix, San Francisco, Los Angeles and Austin — with Atlanta, Miami and Washington, D.C., slated to get the service next year. The service in the nation’s capital will be contingent upon the city council and mayor agreeing to overturn a law that bans autonomous vehicles.

A Waymo autonomous vehicle travels along…