Many in the Tesla and electric vehicle (EV) community have eagerly awaited the company’s rollout of a driverless ride-hailing service, and a few recent developments suggest that the company may be considering multiple U.S. cities for early pilot programs.
Tesla is in talks with Austin, Texas officials about rolling out early pilot programs for its self-driving robotaxis as early as next year, as reported by Bloomberg earlier this month, and echoing CEO Elon Musk’s previous aims to launch commercial robotaxis in 2025. As detailed in emails acquired by the publication through public record requests, a Tesla employee has already been discussing the deployment of such fleets since at least May, though the company has also been considering pilot deployment in other Texas cities.
“Tesla is still working to strategically find a city within Texas to deploy… The city of Austin is obviously on our roadmap, but has not yet been decided where we will deploy first as we have many options available,” wrote an employee in one email from November.
The report also said that Tesla reached out to the city of Austin ahead of its October 10 “We, Robot” event, during which it unveiled the Cybercab, and the employee expressed hopes to meet safety expectations in the city of Austin, along with training first responders on how to interact with autonomous vehicles.
Earlier this month, Tesla held an event at its Gigafactory in Austin to help train first responders on its autonomous vehicle technology, though the employee said it wouldn’t yet be used on public roads and would let officials know of any changes to that.
Tesla’s initial ride-hailing pilots could also target California, with internal tests already underway
During the company’s Q3 earnings call in October, Elon Musk also said that employees in the Bay Area, California were already testing ride-hailing services internally. Using the company’s development app, Tesla employees can already request rides and be taken to anywhere in the Bay, according to the CEO.
Both Texas and California cities make sense for Tesla’s initial rollout of commercial robotaxi services, especially given that Musk also said the company aims to debut ride-hailing services and “Unsupervised” Full Self-Driving (FSD) approval in both of these states in 2025, dependent upon regulatory approval. Musk also said that the current internal ride-hailing tests in the Bay Area utilize safety drivers initially, though it isn’t required to do so.
Watch Tesla’s FSD v13.2 navigate away from park in a tricky situation
READ MORE: Tesla is ramping its Cybercab testing sessions at Giga Texas
Earlier this month, a Deutsche Bank report noted that Head of Investor Relations Travis Axelrod said also said Tesla plans to utilize teleoperation during initial rollout of autonomous ride-hailing efforts, as a safety and redundancy measure. This will likely play a role wherever the company first deploys commercial ride-hailing efforts.
Tesla also teased a ride-hailing mobile app in its Q1 Shareholder Deck earlier this year, showing a summon button to order ride-hails, an estimated wait time, climate controls for during the ride, navigation details, and even the ability to select and cycle through music or other media options.
Credit: Tesla
The mobile app avatar showed a Model Y, highlighting the ability for Tesla’s other vehicles to be eligible for ride-hailing operations through the Supervised Full Self-Driving (FSD) program, which is available to any owner who purchases the software through a subscription or one-time purchase.
Tesla Cybercab, Waymo and commercial robotaxis
We also learned in October that the Cybercab features a large touchscreen, in addition to excluding a steering wheel or pedals. You can catch our first ride in the Cybercab below, as captured during Tesla’s October 10 “We, Robot” event in Southern California.
?: Our FULL first ride in the @Tesla Cybercab pic.twitter.com/6gR7OgKRCz
— TESLARATI (@Teslarati) October 11, 2024
Both Texas and California make sense as locations Tesla would deploy early ride-hailing services, especially given its Fremont factory, Palo Alto engineering headquarters, and its competitor Waymo, which already operates paid driverless ride-hailing in San Francisco and Los Angeles.
Although Tesla isn’t expected to enter production with the Cybercab until 2026, the company’s other vehicles could be used to operate commercial self-driving at some point, though it also faces multiple competitors aiming to deploy these services.
Meanwhile, Waymo, the commercial robotaxi company backed by Google parent company Alphabet, has already been operating paid driverless ride-hailing in San Francisco since last year, and it has expanded services to Los Angeles, and Phoenix, Arizona throughout this year. This week, the company said it’s now giving over 150,000 paid driverless rides per week.
Amazon owns the driverless ride-hailing company Zoox, which has recently also gained some ground in deploying commercial self-driving ride-hailing vehicles in the Bay Area.
With General Motors (GM) recently announcing the end of its self-driving arm Cruise, one less future competitor remains for Tesla in the commercial robotaxi space. Musk joining the administration of incoming President Donald Trump is also widely expected to accelerate regulation efforts in the rollout of self-driving technology, though the urgency of the emerging market is quickly becoming clearer.
Still, Musk and Tesla supporters have argued that the company’s FSD will be more scalable than companies like Waymo utilizing geo-mapping efforts, due to its AI neural network model being trained on video footage from real-time drivers across the company’s ownership network. With added safety measures like teleoperation and safety drivers in its early rollout of commercial robotaxi services, Tesla may yet be able to gain enough public and regulatory trust to start deploying these services in the coming months.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
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Elon Musk
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
The Space Force just handed SpaceX $2.29 billion to build the military’s space internet backbone.
The U.S. Space Force awarded SpaceX a $2.29 billion contract on May 26, 2026 to build the backbone of its Space Data Network, a satellite-based communications system designed to keep American military forces connected anywhere on Earth in real time. The contract is firm-fixed-price and requires SpaceX to deliver a fully operational prototype by the end of 2027.
In plain terms, the SDN Backbone is the plumbing behind the military’s space-based internet. It functions as a low Earth orbit satellite constellation providing robust, high-capacity, and low-latency data transport for the Joint Force, connecting sensors and weapons systems continuously, globally, and securely. Think of it as a private, hardened version of Starlink built specifically for battlefield communications, one that soldiers, ships, and aircraft can rely on even in contested environments where ground-based networks have been disrupted.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
The Space Force was direct about why SpaceX was selected. “The SDN Backbone leverages the best of commercial innovation and delivers a strong foundation for the SDN mission set — a huge benefit and enabler for our warfighters,” said USSF Col. Ryan Frazier.
“We aren’t trading speed for scale; we are demanding both. By using rapid prototyping and Other Transaction Authorities, we are ensuring our advanced solutions are integrated and delivered to the warfighter as fast as possible,” added USSF Lt. Col. Fry, SDN Backbone system program manager.
The SDN Backbone will work alongside the Space Development Agency’s Transport Layer, with the two systems forming a unified open architecture to provide critical data transport for current and future Department of War missions.
As Teslarati has reported, this is not SpaceX’s first Space Force contract of 2026. In April, the Space Force awarded SpaceX $178.5 million to launch missile tracking satellites, and SpaceX is already embedded in the Golden Dome missile defense software group. The $2.29 billion SDN Backbone award puts SpaceX at the center of how the American military communicates in space, a position with direct implications for its reported $1.75 trillion IPO valuation as the company heads toward a public offering as early as June 2026.
Tesla’s dedicated factory for building up to ten million Optimus units is officially under construction at Gigafactory Texas.
Drone footage released on May 27 by Giga Texas observer Joe Tegtmeyer captures the significant milestone of the first steel structure officially standing at Tesla’s new Optimus factory on the North Campus of the facility.
Phase two of land reclamation is advancing steadily, and the progress will let the new building extend nearly the full length of the main Giga Texas factory, potentially exceeding 4,000 feet, while measuring somewhere between 50 and 70 meters narrower. Extensive foundation work is proceeding as well.
Big news at the new Optimus 10m/y factory construction site today! The 1st steel structure has been erected & as expected the second phase of land reclamation is underway.
This will allow this new factory to grow to nearly the same length as the main Giga Texas factory,… pic.twitter.com/FidRLV6XpU
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) May 27, 2026
This facility forms a central element of Tesla’s broader North Campus expansion at Giga Texas. The project will add more than 5.2 million square feet of new industrial space. It sits alongside other advanced developments, including a Terafab for next-gen AI chips. The scale reflects Tesla’s commitment to transforming humanoid robotics into a core pillar of the company’s future.
Musk has said that Optimus will be the biggest product in the world on several occasions. He believes it will be Tesla’s biggest valuation contributor.
Tesla prepares to expand Giga Texas with new Optimus production plant
Tesla plans to build about 10 million robots at the site annually once it is completed, which would be about 27,000 units each day.
The Optimus plant at Giga Texas is part of Tesla’s phased strategy for Optimus manufacturing. In an effort to start production of the robot well before the Giga Texas plant is complete, Tesla ended production of the Model S and Model X vehicles, which were built in Fremont, California, to make way for initial Optimus manufacturing efforts.
Production there will start in either July or August of this year, and early units will support internal factory tasks while the team gathers real-world data to refine processes. The Gigafactory Texas facility will house a second-gen production line. It targets high-volume output starting in Summer 2027.
Musk has repeatedly described Optimus as potentially more valuable than Tesla’s entire vehicle business. Current versions are already completing minor tasks around various facilities, while Tesla continues to refine its abilities and add new features.
Tesla’s total investment could reach several billion dollars. Significant challenges lie ahead, including the creation of an entirely new manufacturing ecosystem, the refinement of AI systems for dependable autonomy, and the development of reliable supply chains for actuators, sensors, and other components.
Nevertheless, the visible progress at Giga Texas highlights Tesla’s capacity to translate ambitious concepts into physical reality.
Tesla’s Optimus factory stands as much more than a simple expansion project, as it is quite literally the second phase of what could potentially be the biggest product ever. With construction beginning, 2027 is poised to become a transformative year for Tesla, as it evolves even further from an electric vehicle leader into a pioneer of intelligent, general-purpose machines.
Tesla Vice President of Vehicle Engineering, Lars Moravy, recently revealed the company has thought about introducing a Plaid powertrain on the Model 3, but there could be some challenges involved.
On the Ride the Lightning podcast, Moravy revealed that he thinks about a Plaid Model 3 “all the time,” and it certainly has a place in Tesla’s potential lineup of future vehicles.
Now that the Plaid powertrain is technically defunct due to the newfound absence of the Model S and Model X, Tesla could find a way to reintroduce the lightning-quick trim level to its mass-market vehicles.
But there are going to be some challenges with it. Moravy said that the Model 3 Plaid would likely adopt the carbon-sleeved motors that the Model S Plaid had. However, packaging would be a major challenge, as Moravy said on the podcast, it would be a “tight engineering squeeze.”
It’s important to note that there are no active production plans for the Model 3 Plaid at this point, but it’s also worth noting that with the Model S and Model X Plaid no longer available, Tesla would likely be willing to introduce something that is even more white-knuckle than the Model 3 Performance, which already boasts a 2.9-second 0-60 MPH acceleration rate and a top speed of 163 MPH.
Of course, there is the Roadster, but we don’t know when that will exactly make it to market, and we know that, for sure, it will not be accessible to many.
Tesla unveils juicy new detail on the Roadster and hints at new unveil timeline
Tesla has prided itself in building some of the best cars out there, but they’re also interested in building cars that are simply fun to be in.
A Plaid Model 3 could truly push the limits and could end up being one of the best cars Tesla will ever build, especially if it can shave off at least half of a second from its 0-60 MPH time and increase its top speed slightly.
More than anything, the real changes will be in the ride and aerodynamics. Tesla improving things like the suspension, handling, and downforce will be the true trademarks of its Plaid powertrain; putting it in the Model 3 could be a great move for the company and for customers interested in high-end performance.
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
Tesla’s dedicated Optimus factory construction officially underway at Giga Texas
