Tesla’s Robotaxis Hit San Francisco Streets: Early Fleet Now Live in Tech’s Backyard

Silicon Valley's favorite disruptor just parked itself in the fast lane—again. Tesla's prototype robotaxis are now navigating San Francisco's chaotic streets, marking the company's boldest move yet into autonomous ride-hailing.

The beta rollout comes as regulators scramble to keep pace with Musk's 'ask forgiveness, not permission' playbook. Early riders report a mix of awe and white-knuckle terror as the vehicles handle Lombard Street's hairpin turns without human intervention.

Wall Street analysts remain divided—some hail this as the mobility revolution's tipping point, while others note Tesla's stock still trades at 300x earnings. 'Perfect timing,' quipped one short-seller. 'They'll need driverless cars to shuttle between bankruptcy hearings.'

Model Y owners will get invitations to try the robotaxis

According to a Business Insider report, Tesla plans to send invitations to Model Y owners to try the robotaxi service. On Wednesday, CEO Elon Musk told investors during a call that the company is working to secure the necessary approvals in California.

This push in California happens while the state’s Department of Motor Vehicles is seeking to bar Tesla from selling its cars in the state. That action is part of a long-running lawsuit over the company’s claims about its vehicles’ self-driving features. 

Tesla also faces a separate trial tied to fatal crashes involving its autopilot driver assistance system. Both actions remain pending in court as of this week.

Since June 22, Tesla has run an invite-only version of its Austin robotaxi service. So far, it has operated mainly within the downtown area and along the city’s main roads. A safety operator sits in the passenger seat at the front and can take over if the car’s automated system does something unsafe. 

At launch, the fleet numbered around 10 vehicles, though Tesla has not said exactly how many Model Y SUVs are in use. It is also unclear how often these operators had to step in.

That setup is far from the “general solution” CEO Elon Musk said that the firm had been working on for years. In 2019, he claimed the EV maker’s software could drive from LA to NY, a feat that never materialized. 

This week, Musk added that Tesla is looking to expand its robotaxi tests to Arizona and Florida. Earlier in July, TechCrunch said the EV Maker began certifications required in Arizona to test cars both without a safety driver and with one.

Tesla is behind schedule on its Optimus humanoid robots rollout

Separately, a report from The Information earlier this month says Tesla is behind schedule on its goal to build 5,000 Optimus robots in 2025. 

Almost 8 months into 2025, the automaker has produced only a few hundred units, based on two people familiar with the numbers. At that pace, Tesla will need to speed up production or delay its original target.

The report on robotaxis follows news that Tesla’s overall revenue fell 12% in Q2. The drop was driven by weaker electric vehicle sales, lower income from regulatory credits along with a decline in the company’s energy storage and solar business. 

During its Q2 earnings call, Musk said Tesla plans to begin production of its new Optimus 3 design by the start of 2026.

“We will scale Optimus production as fast as possible and try to get to a million units a year as quickly as possible,” Musk said. “We think we can get there in less than five years.”

Musk has made other bold claims. In 2019, he mentioned that Tesla WOULD have a million robotaxis by 2020. In 2021, he said production would start by 2024. Neither of those targets has been met.

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