Tesla launched a small-scale pilot of its autonomous taxi service in Austin, causing its stock to rise over 8%.
The pilot features about 10 self-driving Model Y SUVs with a range of over 330 miles and up to seven seats.
Tesla's autonomous driving platform, Fully Self-Driving, is powered by AI models trained with anonymized data from customers' vehicles.
Tesla's self-driving vehicles use more than half a dozen cameras, unlike some companies like Waymo which utilize cameras, radar, and lidar sensors.
The autonomous taxis will operate in a limited area in Austin between 6:00 a.m. and midnight, initially available to social media influencers.
Early videos show incidents where autonomous Model Y vehicles violated traffic laws, potentially raising concerns about the technology's reliability.
The U.S. National Highway Traffic Safety Administration has investigated Tesla's autonomous driving software due to prior collisions involving enabled software and reports of crashes related to the Smart Summon feature.
Regulatory scrutiny may impact Tesla's plans to expand the autonomous taxi service to San Francisco and Los Angeles and launch the Cybercab with no steering wheel by 2027.