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Tesla Robotaxi gets listed as vehicle “in development” in Q2 update letter

Credit: Alwinart/Twitter

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In previous quarters, Tesla’s Update Letters have only listed the words “future product” when referring to upcoming projects that are in development. This changed in the Q2 2022 Update Letter, as Tesla indicated that the next vehicle it would be developing after the Cybertruck, Tesla Semi, and Roadster would be the Robotaxi. 

References to Tesla’s Robotaxi have been shared by CEO Elon Musk in the past, though the vehicle that would be used in the service has somewhat been updated over the years. In Elon Musk’s Master Plan Part Deux and in 2019’s Autonomy Day, Musk suggested that Tesla’s Robotaxi service would be comprised of vehicles like the Model 3. 

Credit: Tesla

Tesla seemed to double down on this strategy when it launched its Model 3 leasing program. Unlike traditional leasing systems, Model 3s that were under lease were not available for purchase once the lease matured. According to Tesla, this was because it would be using the off-lease vehicles for its autonomous ride-haling network

More recently, and as the FSD Beta program expanded, Tesla’s strategy for its own Robotaxi fleet appears to have changed. During the Cyber Rodeo at Gigafactory Texas in April, Elon Musk noted that the Robotaxi would be a completely new “futuristic” vehicle. This suggested that Tesla would be designing a dedicated car for its ride-hailing service. 

More comments about the upcoming vehicle were shared later during the Q1 2022 earnings call, when CEO Elon Musk provided a few hints about the Robotaxi’s features. According to Musk, Tesla’s Robotaxi will be built around FSD, so it would not even have steering wheels or pedals anymore. 

“We’re also working on a new vehicle that I alluded to at the Giga Texas opening, which is a dedicated robotaxi that’s highly optimized for autonomy, meaning it would not have [a] steering wheel or pedals. And there are a number of innovations around it that I think are quite exciting. But it’s trying to achieve the lowest — fully considered — cost-per-mile, cost-per-kilometer, accounting everything. I think it’s gonna be a very powerful product,” Musk said. 

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Very few details about the Robotaxi have been shared by Tesla apart from Elon Musk’s brief comments on the vehicle. However, considering comments from Tesla executives during the Q2 2022 earnings call, it would definitely seem that the Robotaxi will be built with simplicity and efficiency in mind. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla rolling out Robotaxi pilot in SF Bay Area this weekend: report

Similar to the Austin pilot, the Robotaxi rides will reportedly be a paid service.

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Credit: @AdanGuajardo/X

Tesla is reportedly preparing to launch a Robotaxi pilot program in the Bay Area this weekend, with invites to a select number of customers reportedly being sent out as early as this Friday.

The update was shared in a report from Insider, which cited an internal memo from the electric vehicle maker.

New Robotaxi service launch

According to Insider, the Robotaxi service in the Bay Area is set to launch as soon as Friday. Thus, some Tesla owners in the area should receive invites to use the driverless ride-hailing service. Similar to the Austin pilot, the Robotaxi rides will reportedly be a paid service.

The publication noted that the Robotaxi service’s geofence in its Bay Area launch will be quite large, as it will include Marin, much of the East Bay, San Francisco, and San Jose. This is not surprising as California has long been saturated with Teslas, and it is home to several of the electric vehicle maker’s key facilities.

Unlike the Austin pilot, the Tesla Robotaxi service’s pilot in the Bay Area will use safety drivers seated in the driver’s seat. These drivers will be able to manually take over using the steering wheel and brakes as needed. As per a spokesperson from the California DMV, the agency recently met with Tesla but the company is yet to submit a formal application to operate fully driverless cars. 

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Tesla Robotaxi expansion

Interestingly enough, Tesla did tease the release of its Robotaxi service to the Bay Area in its second quarter earnings call. While discussing the service, Tesla VP of Autopilot/AI Software Ashok Elluswamy mentioned that the company will initially be rolling out Robotaxis with safety drivers in the San Francisco Bay Area. He did, however, also highlight that the electric vehicle maker is working hard to get government permission to release the service for consumers.

“The next thing to expand would be in the San Francisco Bay Area. We are working with the government to get approval here and, in the meanwhile, launch the service without the person in the driver seat just to expedite and while we wait for regulatory approval,” he stated.

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Tesla is ready with a perfect counter to the end of US EV tax credits

Tesla executives have mentioned that these more affordable models would resemble the company’s current lineup.

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Credit: Tesla Asia/X

The United States’ electric vehicle tax credit is coming to an end at the end of the third quarter. Tesla, the country’s leading electric vehicle maker, is ready to meet this challenge with a rather simple but clever counter. 

Tesla executives outlined this strategy in the recently held Q2 2025 earnings call.

End of the US EV tax credit

While Elon Musk has always maintained that he prefers a market with no EV tax credit, he also emphasized that he supports the rollback of any incentives given to the oil and gas industry. The Trump administration has not done this so far, instead focusing on the expiration of the $7,500 EV tax credit at the end of the third quarter.

Tesla has been going all-in on encouraging customers to purchase their vehicles in Q3 to take advantage of lower prices. The company has also implemented a series of incentives across all its offerings, from the Cybertruck to the Model 3. This, however, is not all, as the company seems to be preparing a longer-term solution to the expiration of the EV tax credit.

Affordable variants

During the Q2 2025 earnings call, Vice President of Vehicle Engineering Lars Moray stated that Tesla really did start the production of more affordable models in June. Quality builds of these vehicles are being ramped this quarter, with the goal of optimizing production over the remaining months of the year. If Tesla is successful, these models will be available for everyone in Q4. 

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“We started production in June, and we’re ramping quality builds and things around the quarter. And given that we started in North America and our goal is to maximize production with a higher rate. So starting Q3, we’re going to keep pushing hard on our current models to avoid complexity… We’ll be ready with new, more affordable models available for everyone in Q4.,” Moravy stated. 

These comments suggest that Tesla should be able to offer vehicles that are competitively priced even after the EV tax credit has been phased out. Interestingly enough, previous comments from Tesla executives have mentioned that these more affordable models would resemble the company’s current lineup. This suggests that the more affordable models may indeed be variations of the Model Y and Model 3, but offered at a lower price.

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Elon Musk reveals Tesla’s next Robotaxi expansion in more ways than one

Tesla Robotaxi is growing in more ways than one. Tesla wants to expand and hopes to reach half the U.S. population by the end of the year.

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Credit: Tesla

Tesla CEO Elon Musk revealed the company’s plans for its next expansion of the Robotaxi in terms of both the geofence in Austin and the platform overall, as it looks to move to new areas outside of Texas.

Tesla launched the Robotaxi platform last month on June 22, and has since expanded both the pool of users and the area that the driverless Model Y vehicles can travel within.

The first expansion of the geofence caught the attention of nearly everyone and became a huge headline as Tesla picked a very interesting shape for the new geofence, resembling male reproductive parts.

The next expansion will likely absolve this shape. Musk revealed last night that the new geofence will be “well in excess of what competitors are doing,” and it could happen “hopefully in a week or two.”

Musk’s full quote regarding the expansion of the geofence and the timing was:

“As some may have noted, we have already expanded our service area in Austin. It’s bigger and longer, and it’s going to get even bigger and longer. We are expecting to greatly increase the service area to well in excess of what competitors are doing, hopefully in a week or two.”

The expansion will not stop there, either. As Tesla has operated the Robotaxi platform in Austin for the past month, it has been working with regulators in other areas, like California, Arizona, Nevada, and Florida, to get the driverless ride-hailing system activated in more U.S. states.

Tesla confirmed that they are in talks with each of these states regarding the potential expansion of Robotaxi.

Musk added:

“As we get the approvals and prove out safety, we will be launching the autonomous ride-hailing across most of the country. I think we will probably have autonomous ride-hailing in probably half the population of the US by the end of the year.”

We know that Tesla and Musk have been prone to aggressive and sometimes outlandish timelines regarding self-driving technology specifically. Regulatory approvals could happen by the end of the year in several areas, and working on these large metros is the best way to reach half of the U.S. population.

Tesla said its expansion of the geofence in Austin is conservative and controlled due to its obsession with safety, even admitting at one point during the Earnings Call that they are being “paranoid.” Expanding the geofence is necessary, but Tesla realizes any significant mistake by Robotaxi could take it back to square one.

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