Tesla launched its Cybercab service in Austin on Thursday, beginning paid customer rides in a purpose-built, driverless two-seater with no steering wheel or pedals, booked through the company's Robotaxi app.

The launch marks the first time Tesla's specially built autonomous vehicle has carried paying passengers, bringing Elon Musk's long-promised robotaxi vision into real-world operation. It also intensifies competition with Waymo, Alphabet's driverless ride-hailing unit, which already operates paid robotaxi services in Austin and other US cities using vehicles equipped with lidar and other dedicated sensors — a technical contrast to Tesla's camera-based, vision-only approach to autonomy.

Autonomous gold two-seater debuts in Texas

The rollout took place at an invite-only event in Austin, where Tesla offered a select group of influencers and loyal customers the first rides in its Cybercabs. According to Axios, the vehicle is a gold-painted model with gull-wing doors and no conventional mirrors, steering wheel, or pedals.

Tesla is positioning the Cybercab's interior as more than just a passenger space, embedding entertainment into the ride experience. A promotional video released by the company showcased theater, music, and gaming apps accessible via a 22-inch touchscreen. Tesla also said future models would be equipped with V5 Starlink hardware to ensure full connectivity.

Customers will book Cybercab rides through Tesla's dedicated ride-hailing app, with an ordering process designed to work much like Uber, Lyft, or Waymo.

A long road to Robotaxi goals

Texas has registered just 45 Cybercabs so far, a small fraction of the 420 robotaxis Tesla operates across the state. Most of those vehicles are conventional Model Y cars running the company's Full Self-Driving software, meaning the majority of ride requests will not yet be picked up in the steering-wheel-free Cybercab.

Tesla has built production capacity for up to 125,000 Cybercabs annually, while Musk has said the company ultimately plans to produce the vehicles at a scale of millions. The gap between the CEO's vision and current reality, however, remains wide. How quickly the initial Austin fleet scales, and how regulators respond as it does, will shape the pace of any broader rollout.

A regulatory fight Tesla must overcome

Reaching the targeted Cybercab production levels could pose regulatory challenges at the federal level. Tesla appears willing to certify the Cybercab as compliant with existing regulations rather than seeking an exemption from safety requirements that the unconventional vehicle design may not meet. That approach could help Tesla avoid the production limits associated with the exemption process, giving the company far greater flexibility to scale Cybercab manufacturing.

The National Highway Traffic Safety Administration, which does not pre-approve vehicles or new technology, said Tesla has filed no exemption request and that the agency "is in touch with the company and is monitoring the situation." Federal motor vehicle safety standards have historically assumed the presence of human controls such as steering wheels and mirrors, which is why a vehicle lacking them faces a distinct certification path — a hurdle that has weighed on other autonomous-vehicle programs as well.

Tesla is also seeking outside investment to expand its robotaxi network. On Thursday, the company opened an application form inviting individuals and entrepreneurs to purchase Cybercab fleets for commercial use or develop the hubs and infrastructure needed to service them, under the pitch: "Help us build our Robotaxi network." The vehicles are not yet available for purchase by the general public.