Tesla may consider Texas as its new home after establishing a Gigafactory in the state, but the EV maker is still getting the cold shoulder from the local auto market. Just recently, for example, Texas released a list of electric and electrified vehicles that are eligible for its Light-Duty Motor Vehicle Purchase or Lease Program. No Teslas were included in the list.
The program offers rebates of up to $2,500 for the purchase or lease of specific electric and electrified vehicles. The list of eligible cars is extensive, comprising 142 different models from practically every major automaker. These include 22 BMW models, 17 models from Porsche, 15 from Audi, 6 from Mercedes-Benz, and 14 cars from Ford. Even Bentley had two models that were included in the list.
What was absent in the eligible vehicles list was every Tesla offered today. Tesla, the Austin-based EV maker that’s poised to provide at least 20,000 direct jobs and 100,000 indirect jobs over time in the state thanks to Gigafactory Texas, was deemed ineligible for the state’s EV credit. The reason for this seems to be something that Tesla has been dealing with since its earliest days—auto dealerships.
Laura Lopez, a media and community relations manager for the Texas Commission on Environmental Quality, which runs the rebate program, explained Tesla’s absence in a statement.
“The program currently requires that eligible vehicles must be purchased or leased from a licensed new vehicle dealer or leasing company in Texas. Under Texas law, vehicles purchased directly from the manufacturer or an out-of-state dealer not licensed to sell or lease new vehicles in Texas are not eligible for a rebate,” she said, according to The Center Square.
Texas law currently prevents Tesla and other automakers from selling vehicles directly to consumers. Despite notable support from car buyers, dealers in states like Texas insist that the use of franchised dealers is still the optimal way to purchase vehicles. The Texas Automobile Dealers Association has also maintained that the state’s law preventing direct sales is a way to protect competition.
“Texas franchised dealer laws protect competition and provide the most efficient and effective delivery model for new and used car sales in Texas. The current system works well for Texas and Texans,” Jennifer Stevens, a spokesperson for the Texas Automobile Dealers Association, said.
If Texas does not change its laws, Tesla would have to ship its Made-in-Texas vehicles out of state first before delivering them to Texas buyers. This setup is ridiculous, and it is one that is being challenged even by numerous entities, including politicians in the state. State Rep. Cody Harris, a Republican representing District 8, introduced a bill in 2021 that aimed to acquire exceptions to Texas’ dealer franchise law, but his efforts were unsuccessful.
Nevertheless, Harris noted that he believes Tesla would thrive regardless of what happens. “As markets and technologies change, we want to be the go-to state for businesses who are being crushed by burdensome regulation in other parts of the country, which is why Tesla chose to move here from California,” he noted.
Carla Bailo, the president and CEO of the Center for Automotive Research in Michigan, is on the same page. “It certainly hasn’t slowed down Tesla’s sales – they are still selling in all these places they don’t have dealerships – and a lot more companies are starting to go that way because the consumer really likes it. (Dealership laws) are protecting something that might be going by the wayside in any case. The dealer, unfortunately, hasn’t always been a pleasant experience for a lot of people,” she said.
Below are the vehciles that qualify for Texas’ Light-Duty Motor Vehicle Purchase or Lease Program.
Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.
Elon Musk
Tesla officially launches Robotaxi service with no driver
Tesla launches its driverless Robotaxi in Austin, marking the first time the company has offered its ride-hailing service anywhere in the world.
Tesla has officially launched its Robotaxi service platform with no driver in Austin, Texas. This is the first time Tesla has allowed driverless Robotaxis to pick up members of the public and take them around via the ride-sharing service the company has been developing for several years.
Teslarati had a first-hand look at the launch of the Robotaxi service in Austin, as we are part of the Early Access group, which is a limited group of people that will be able to hail a driverless Model Y in the geofenced area in Texas.
The Robotaxi platform is currently geofenced in a small portion of South Austin. It is roughly thirty minutes from end to end, and Tesla’s strategy is prioritizing safety through a number of safeguards that are implemented in this early program.
There is a fixed price of just $4.20 for any ride, regardless of duration, at this time. This will not always be the case, however. When a wider customer base is allowed to hail Robotaxis, ride fares will vary on things like travel distance, length of trip, and potentially time of day.
Here’s one of the first videos of Tesla Robotaxi ride
🎥: @BLKMDL3 https://t.co/LbVLoLtFGQ pic.twitter.com/PUQIqCRLQo
— TESLARATI (@Teslarati) June 22, 2025
The first rides kicked off at around 2 p.m. local time in Austin. They are confined to the back row of the Model Y, while a Tesla safety monitor sits in the passenger seat. Passengers will have their personal media and streaming settings available to them as the car will sync with their driver profiles.
Rides are requested through a Robotaxi addition on the regular Tesla iOS app:
🚨 Here’s our FIRST LOOK at the Tesla Robotaxi app! pic.twitter.com/kuEqP4n1SS
— TESLARATI (@Teslarati) June 22, 2025
The safety monitor is only there to ensure things go smoothly with each ride. They do not have pedals or a steering wheel on their side. The car is doing everything during these Robotaxi rides.
The big takeaway from Robotaxi’s launch is that Tesla will begin generating additional revenue through this new stream. As concerns over demand and annual growth rate continue to take focus from doubters, Tesla’s continuous rollout of the Robotaxi fleet will expand potential revenue opportunities, potentially creating billions upon trillions of dollars in value.
This is something Tesla permabulls like Cathie Wood of ARK Invest and Dan Ives of Wedbush have talked about for years: the launch of a driverless Robotaxi fleet that generates new income streams for Tesla.
Elon Musk
First Look at Tesla’s Robotaxi App: features, design, and more
Tesla is using a Robotaxi section of its normal smartphone application to enable access to driverless vehicles roaming around Austin.
Tesla has officially launched the Robotaxi platform to a limited number of people, giving them the ability to ask for a ride from a driverless Model Y in Austin, Texas. But how do you hail a ride?
Through the Tesla Robotaxi app, which officially launched on June 22 as the company initiated the first rides for non-employees, people can request rides from driverless cars that are traveling around Austin. Teslarati gained access to the app as we are members of the Early Access Rider program.
There are only a very limited number of vehicles operating within the fleet currently, as Tesla has said the number is between 10 and 20 vehicles.
Tesla is using a Robotaxi section of its iOS smartphone app for the launch, confirming what the company said prior to the program’s maiden voyage: there would not be a separate app for the Robotaxi.
First Look at the Robotaxi App
The Tesla Robotaxi app, similar to the official Tesla App, features a simple interface that should be familiar to anyone who has used a ride-sharing app in the past. Downloading the app brings users to a sign-in page, which features a Tesla Model Y Robotaxi as a header image. Users can then log in or create an account to access the service.
A Clean, Simple UI
Upon logging in, users are presented with a clean user interface that allows them to select a destination and pickup point. Upon booking, users are provided with a real-time update on when their Robotaxi will arrive. Users could also select some settings for their upcoming ride, such as their preferred temperature in the cabin.
Smart Suggestions
If there is one evident thing about Tesla’s Robotaxi App, it is the fact that it is smart and designed to make driverless ride sharing services feel as normal as possible. While waiting for their ride, customers are presented with a number of tips that should help them understand their robotaxi better.
These include tips on how to use the Model Y’s door handles, as well as information about the vehicle’s light signals. The app also includes smart suggestions on destinations that riders can visit using their Robotaxi. These include cafes, restaurants, parks, shopping centers, and other pertinent locations.
Cybercab Theme
Another thing that is evident with the Robotaxi App is its Cybercab-inspired color theme. This is evident from the login page, which already features the golden hues of the dedicated two-seater autonomous car. The golden Cybercab color theme is used to great effect inside the app itself as well.
No Tips, at Least for Now
As observed by Tesla owner-enthusiast @BLKMDL3, Tesla is not accepting anything more than the service’s flat $4.20 rate per ride for now. If customers wish to leave a tip for the service, they would be presented with a page featuring Tesla’s hedgehog mascot saying “Just Kidding.”
Tips will likely be an option in the future, but for this stage of the Robotaxi rollout, it appears that the service really will follow a flat rate system.
News
Watch Tesla’s first driverless public Robotaxi rides in Texas
Tesla’s first driverless Robotaxi rides for non-employees are starting with the first drives beginning today.
Tesla has finally launched its Robotaxi platform to members of the public for the first time in Austin, Texas.
The Tesla Robotaxi platform is a driverless ride-hailing service that will enable people to use their cars for passive income as they will ride around, find riders, and drive them to their destinations in exchange for money. For right now, Tesla is using company vehicles, the Model Y specifically, and has opened up rides to a small number of people who are a part of the Early Access Program.
Teslarati is a member of the Early Access Program, as we were invited to Austin for the launch. We have gained access to Tesla’s new Robotaxi app, which lies within the main Tesla iOS app, and we are able to use the Robotaxi fleet during the Early Access Program.
The first rides are already occurring as Tesla launched the platform at around noon local time in Austin on Sunday:
EXCLUSIVE: First Tesla Robotaxi Rides Ever! https://t.co/13ldQtIn07— Herbert Ong (@herbertong) June 22, 2025
EXCLUSIVE: First Tesla Robotaxi Rides Ever! https://t.co/FrQ69b2QKO— Ale𝕏andra Merz 🇺🇲 (@TeslaBoomerMama) June 22, 2025
The video shows that Tesla’s initial Robotaxi rides are being quite cautious. Currently, the Robotaxis can only travel within a geofenced portion of Austin. This area will eventually be expanded.
For the time being, Tesla is keeping a safety rider in the vehicles with occupants, but they do not take up the driver’s seat. Instead, they are sitting in the passenger’s seat. This is simply a safety precaution that Tesla is using to keep Early Access riders safe, although there are ways riders can alert Tesla of any issues.
In the initial communication Tesla sent to members of the Early Access Rider program, the company said the Cabin Camera would be deactivated for the duration of their rides, but can be used if the rider needs support. Additionally, the in-cabin microphone will be deactivated, but can also be used to get in contact with support if there are any issues during the ride.
We have seen a variety of different Robotaxis rolling around Austin for the past several weeks. The company has been testing the vehicles in a very limited way for the time being, and it only has between 15 and 20 Robotaxis in the city for the launch. This number will slowly grow over time.
Tesla officially launches Robotaxi service with no driver
First Look at Tesla’s Robotaxi App: features, design, and more
Watch Tesla’s first driverless public Robotaxi rides in Texas
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