Tesla plans Robotaxi testing in five more U.S. cities

Planned expansion of Robotaxi testing to new cities

Tesla said it plans to expand Robotaxi testing to areas near Las Vegas, Phoenix, Dallas, Houston, and Miami, pending local approvals and readiness. This goal was announced on November 8, 2025. The company aims to broaden its testing area to include Dallas, Houston, Las Vegas, Phoenix, and Miami.

This planned move indicates that the company is moving beyond small-scale testing. This action is crucial for the car manufacturer as it seeks to understand how its electric vehicles perform in various urban environments.

Initial fleet size in Texas and California

This new expansion builds on the first pilot programs launched earlier in the year. Tesla officially began its Robotaxi testing in Austin, Texas, on June 22, 2025. This initial fleet started with approximately 20 Model Y vehicles operating in a contained area.

The second phase, which quickly followed in the San Francisco Bay Area, introduced more testing cars. These first cities gave the company valuable data on managing and scaling the ride-hailing service.

Robotaxi cars rely on eight cameras for vision

The cars used as Robotaxis, primarily the Tesla Model Y, depend entirely on advanced technology. The Full Self-Driving software is the heart of the system. This software utilizes input from eight external cameras mounted around the car to provide it with 360° vision.

This camera-only approach uses no spinning sensors and is the technical plan Tesla believes will scale fastest. This helps the car’s computer accurately recognize traffic signals and road edges.

Driver requirements differ by state and freeway rules

The regulations for self-driving cars require Tesla to adapt to each state’s requirements. Texas law permits driverless AV operation with state authorization; Tesla’s on-road mode and routes are dependent on permit terms and safety policies. However, this is only allowed on certain roads, and the vehicles must not enter major freeways.

In California, Tesla is currently undergoing DMV testing with driver authorization, but does not have a CPUC permit for commercial driverless rides. This person takes over if the system needs help in complex situations.

Competitors use different sensor technology for safety

Tesla is in a race with other companies, such as Waymo, which also offers autonomous services. Waymo says it operates over 1,500 vehicles today and plans to build 2,000 more U.S.-made I-PACEs.

Unlike Tesla’s camera-only approach, Waymo employs a different technology that combines cameras with a LiDAR sensor. This competition forces faster innovation. Tesla believes its simpler, camera-based system will be cheaper to build and scale to many more cars.

Company goal for 50% US population coverage

This planned expansion to five new cities is part of a vast corporate goal. Musk has stated a target to reach about 50% of the U.S. population by the end of 2025; as of late October to November 2025, coverage remains limited.

This massive scale requires fast regulatory approvals and deployment. Achieving this ambitious goal is crucial to the company’s long-term business plan, which aims to transition from selling cars to operating a high-tech transportation network.

Fleet expansion targets over one thousand five hundred cars

Tesla has set primary fleet deployment targets to achieve its primary population goal. By the end of 2025, the company plans to have over 1,500 Robotaxis operating in the United States.

This includes a target of over 1,000 cars in the San Francisco Bay Area and over 500 vehicles in the greater Austin area. This rapid increase in deployed Model Y cars is necessary to gather more real-world data and scale the service.

AI trained on six million vehicle fleet data

The Robotaxi’s ability to drive safely comes from massive amounts of data. The Full Self-Driving system is trained using anonymous driving scenarios collected from Tesla’s global fleet of over six million vehicles.

This data is fed into large neural networks that make the AI smarter. The complete process of training the neural networks requires vast computing power, taking approximately 70,000 GPU hours. This continuous process helps the cars learn from every mile driven.

Analyst forecasts show very low cost per mile

A significant benefit of a driverless service is the potential for much cheaper rides. Industry analysts, such as ARK Invest, estimate that the cost to operate a Robotaxi at scale could drop as low as $0.25 per mile.

This is significantly cheaper than the current ride-hailing cost of around $2.00 per mile. These estimated savings of over 87% could drastically change how people choose to travel in cities.

Custom FSD computer chip for redundancy

Tesla engineered its own computer hardware to manage the complex AI calculations needed for self-driving. This special processor is called the Full Self-Driving Chip. It is explicitly designed to handle large amounts of camera data efficiently.

For safety, each vehicle uses two separate FSD chips. They work in parallel, meaning they check each other’s work to ensure that the car’s driving decisions are always correct and fail-safe.

Safety reports indicate low-speed parking incidents

While the program expands, safety incidents are closely tracked. NHTSA filings and coverage show several low-speed Austin incidents (e.g., July and September 2025), often involving contact with fixed objects in lots.

The accidents often involved the autonomous system hitting fixed objects, like curbs, in parking lot areas. These reports indicate that even with a human Safety Monitor on board for certain phases, the system still requires further refinement for complex low-speed maneuvers.

Curious how driverless cars might reshape owning a vehicle? Discover the insight into how robotaxis could change the future of car ownership.

Production of the dedicated Cybercab starts in April 2026

The Model Y Robotaxis are temporary as the company prepares for a purpose-built vehicle. Tesla announced on November 10, 2025, that production of its dedicated autonomous car, the Cybercab, is expected to start in April 2026 at its Austin factory.

This new vehicle will be designed without a steering wheel or pedals. This next-generation car is central to the company’s plan to provide a high-volume, low-cost autonomous ride service.

Want to see which automaker just pulled ahead in self-driving tech? Read more about Volkswagen surpassing Tesla in the race for robotaxis.

Would you ride in a fully driverless Tesla today? Share your take below.

Read More From This Brand:

• Tesla wants to bring its robotaxis to New York
• Waymo launches Atlanta Robotaxis right after Tesla’s big reveal
• Tesla Lays Out Dates for Robotaxis and Self‑Driving Delivery

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This slideshow was made with AI assistance and human editing.