• Tesla has launched its first robotaxi service in Austin, Texas, offering rides without human drivers.
• The service employs a limited fleet of Model Y vehicles, operating within a specific geofenced area.
• The National Highway Traffic Safety Administration (NHTSA) is investigating reports of erratic driving behavior from the robotaxis.
• The service was launched amid criticisms over Musk's statements and safety implications.
• Tesla shares rose 10% following the announcement, signifying investor optimism for future growth.

Tesla began its long-discussed robotaxi service on Sunday in Austin, Texas, marking a significant step forward in the company's autonomous vehicle ambitions. The service is currently limited to a small fleet of Model Y electric SUVs, which will operate without human drivers under a pilot program, according to Bangkok Post and India Times.

The rollout aims to showcase Tesla's advancements in artificial intelligence and autonomous technology, with CEO Elon Musk describing it as the "culmination of a decade of hard work" in a post on X (formerly Twitter). The service will initially restrict operations to a geofenced area, targeting select invited users for rides priced at $4.20, as reported by BBC and India Times.

However, the service has immediately faced scrutiny from the National Highway Traffic Safety Administration (NHTSA), which is investigating instances where robotaxis were reported to have violated traffic laws during initial rides. Footage shared on social media indicated erratic behavior, including speeding and improper lane changes, raising safety concerns regarding the Full Self-Driving (FSD) technology utilized by Tesla. The agency confirmed it is in contact with Tesla for more information on these incidents, according to India Times and BBC.

Investor reaction to the robotaxi launch has been notably positive, with Tesla shares soaring by over 10%, reflecting optimism about the future potential of autonomous technology in light of increasing competition in the sector. Industry analysts highlighted that the success of this trial could be pivotal for Tesla, particularly as it shifts focus from traditional electric vehicle sales amid rising competition from other automakers, noted by Channel News Asia and Reuters.

The robotaxi service launch underscores Tesla's intent to pivot aggressively towards self-driving technology. As it navigates potential regulatory challenges, including a new Texas law requiring permits for uncrewed vehicle operations, the road ahead remains fraught with hurdles. Analysts believe the company must demonstrate substantial improvements in its FSD capabilities to maintain a competitive edge, as emphasized in reports from India Times and Channel News Asia.