Texas Tightens The Screws On Tesla’s Robotaxi Rollout

Tesla’s robotaxi service appears to have launched in Austin, offering invite-only rides to a small group of Tesla fans and influencers. But if the automaker wants to continue operating its driverless ride-hailing EVs, it may soon have to comply with new regulations that were signed into law by Texas Governor Greg Abbott on Friday. The rules take effect on September 1.

InsideEVs reported on these policy changes last week. But now that they’ve been signed into law, they represent a new complication for Tesla’s robotaxi dreams. 

As reported by Reuters, the law requires operators of Robotaxis to obtain a permit from the Texas Department of Motor Vehicles before deploying them without human controllers. It also gives the state the authority to revoke the permits if the Robotaxis prove to be a danger to the public. Moreover, it requires them to submit information on how the companies will coordinate with the police and first responders in case of a crash or accident.  

The bill was signed into law after Democratic lawmakers in Texas wrote a letter to Tesla last week, urging the company to disclose how it plans to comply with safety regulations. Starting September 1, the new rules will require autonomous vehicle operators to prove they follow state traffic laws, use onboard recording devices, meet federal safety standards and ensure vehicles can safely stop if the self-driving system fails. The vehicles must also be registered, titled and insured in Texas.

Tesla has said that the Robotaxis will usher in a new era of growth for the company, potentially lifting its valuation into the trillions of dollars. The automaker has also claimed that the Robotaxis are safer than human drivers, something that AI and autonomous vehicle scientists are skeptical of.

After a decade of delays and promises, some 10-20 self-driving Model Ys are now rolling in Austin with a safety driver on board driving in a geofenced area, with remote human controllers for backup. Tesla also issued a whole bunch of rules for the riders, saying that the service will only run between 6 a.m. and midnight and that it could be limited or unavailable in case of adverse weather.

There’s no indication yet if the service is open to the public. So far, it only seems limited to an invite-only list of Tesla’s most ardent fans and influencers, who generally tend to be more forgiving of any errors the Robotaxis might make.

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Correction: The regulations were signed into law on Friday, not Thursday. We regret the error.