The wait is finally over. After years of promises from its eccentric CEO, Tesla debuted its highly anticipated robotaxi service on June 22 in Austin, Texas, a launch that is central to the company’s entire future.

This isn’t just about a new feature; it’s the cornerstone of Elon Musk’s narrative that Tesla is not merely a car company but a world-changing AI and robotics powerhouse. As the automaker faces fierce competition from Chinese rivals like BYD, the success or failure of its autonomous vision could define its next chapter.

“The @Tesla_AI robotaxi launch begins in Austin this afternoon with customers paying a $4.20 flat fee!” Musk announced on X, followed by posts congratulating his teams.

The @Tesla_AI robotaxi launch begins in Austin this afternoon with customers paying a $4.20 flat fee!

— Elon Musk (@elonmusk) June 22, 2025

The service kicked off with a small fleet of 10 to 20 Model Y SUVs navigating public roads. In a demo posted by Tesla, users within a specific “geofenced” area in south Austin can hail a ride through a dedicated app. The concept is simple: a taxi with no human driver.

However, the reality of this “limited launch” is more cautious. The first rides were given to a select group of influencers and fans, and videos posted by the company show a “safety monitor” sitting in the passenger seat, a detail at odds with the fully autonomous dream.

https://t.co/SzXMzFsoOv

— Tesla (@Tesla) June 22, 2025

Musk himself admitted the company is being “super paranoid about safety,” a sentiment that seems justified given a new Texas law requiring state permits for self-driving vehicles, set to take effect on September 1.

Tentatively, June 22.

We are being super paranoid about safety, so the date could shift.

First Tesla that drives itself from factory end of line all the way to a customer house is June 28.

— Elon Musk (@elonmusk) June 11, 2025

At its core, the robotaxi is a vehicle powered by the most advanced version of Tesla’s Full Self-Driving (FSD) system and a suite of eight cameras. But unlike competitors, Tesla claims its system doesn’t need expensive, pre-mapped service areas. “It just works,” the company posted on X, promising future expansion to cities like San Francisco and Los Angeles.

For Musk, this is the culmination of a long-standing promise. He envisions a future fleet, including a new “Cybercab” and “Robovan” with no steering wheels or pedals, that could boost Tesla’s market value by an astonishing $5 trillion to $10 trillion. On June 20, Tesla was worth $1.04 trillion, the 11th most valuable company globally. By comparison, Microsoft ($3.54T), Nvidia ($3.50T), and Apple ($3.00T) top the leaderboard.

Financial bulls share his optimism. “My view is the golden age of autonomous vehicles starting on Sunday in Austin for Tesla,” said Wedbush analyst Dan Ives. “I believe it’s a trillion dollar valuation opportunity for Tesla.” Investor Cathie Wood’s ARK Invest predicts robotaxis could account for 90% of Tesla’s profits by 2029. If they are right, this weekend’s launch was existential.

🚨BREAKING: Dan Ives says Tesla’s biggest growth chapter starts Sunday with Robotaxis

He calls it a $1 trillion opportunity pic.twitter.com/FMhFx7mqeT

— Muskonomy (@muskonomy) June 21, 2025

But there’s a huge problem: Tesla may be late to the party.

Waymo, Google’s self-driving unit and the current market leader, already operates in Austin with a larger service area, as well as in Phoenix, San Francisco, and Los Angeles. Zoox, backed by Amazon, is live in Las Vegas and San Francisco and is testing in several other cities. The question isn’t whether Tesla’s robotaxis will work. It’s whether they’ll work better and faster than everyone else’s.

This fierce competition has led skeptics to dismiss Musk’s grand projections. They argue that Tesla is unlikely to dominate a market where established players already have a significant head start.

“What valuation will be attached to Tesla autonomy when it has to split the autonomous ride hailing market with others?” asks investor Gary Black, whose fund has sold all of its Tesla shares.

The $TSLA debate is not about Tesla robotaxi vs Waymo or Zoox, or whether TSLA robotaxi will work at 99.99% efficacy. Of course it will work or Elon wouldn’t be moving forward with the Austin robotaxi launch today.

The question – which bulls painfully avoid – is when others…

— Gary Black (@garyblack00) June 22, 2025

This is the multi-trillion-dollar question. Is the Austin launch the dawn of Tesla’s next great chapter, or is it a cautious, overhyped entry into a race it may have already lost?