Key Points:
- Tesla will begin testing robotaxis in Austin by the end of June, starting with 10 vehicles. Regulatory concerns persist, with the NHTSA probing Tesla’s FSD system.
- Musk has redirected Tesla’s focus to robotaxis and the Optimus robot, away from low-cost EVs.
- xAI will use a million Nvidia chips at a new Memphis data center named “Colossus.”
- Tesla may license its FSD software to other automakers. A Tesla-xAI merger is not planned but remains a possibility pending shareholder input.
Tesla CEO Elon Musk says the company is preparing to launch its long-awaited robotaxi pilot program in Austin, Texas, by the end of June. The trial will initially deploy about 10 self-driving vehicles in select city areas and plans to expand to 1,000 vehicles in the coming months.
“We are actually going to deploy not to the entire Austin region, but only the parts that are the safest,” Musk told CNBC. The rollout comes as Tesla faces growing regulatory scrutiny from the National Highway Traffic Safety Administration (NHTSA), particularly regarding its Full Self-Driving (FSD) software and its performance in low-visibility conditions.
This robotaxi initiative is a critical part of Musk’s broader strategy. He has shifted Tesla’s focus from developing a lower-cost EV platform to investing in autonomous vehicles and the Optimus humanoid robot. “The only things that matter in the long term are autonomy and Optimus,” Musk emphasized.
Despite falling global Tesla sales due to increased competition and political backlash against Musk, the CEO says he will now reduce his political involvement and prioritize Tesla. “My rough plan on the White House is to be there for a couple days, every few weeks,” he said, about assisting Donald Trump’s re-election efforts.
In parallel, Musk is working to license Tesla’s FSD software to other automakers, aiming to expand the reach of its autonomous tech. He also highlighted the rapid progress of his xAI startup, which recently merged with his social media platform X. xAI has begun constructing a massive data center in Memphis, Tennessee, dubbed “Colossus,” where it plans to deploy a million Nvidia Blackwell chips.
While a merger between Tesla and xAI is not planned, Musk stated it is “not out of the question” and would require shareholder approval.
