Elon Musk’s vision for an autonomous ride-hailing future takes a critical step in June as Tesla prepares to launch its first robotaxi trial in Austin, Texas. Speaking with CNBC’s David Faber, Musk confirmed that the initial deployment will feature around 10 self-driving Model Y vehicles geofenced to selected neighborhoods within Austin, marking a cautious but high-stakes test bed for Tesla’s long-promised Full Self-Driving (FSD) technology.

“It’s prudent for us to start with a small number, confirm that things are going well and then scale up,” Musk told CNBC, underscoring the company’s intent to begin in restricted areas, specifically “parts that are safest” for autonomous operation. If the limited debut proves successful, Musk said Tesla plans to rapidly ramp up to “thousands of robotaxis” and expand services to additional urban markets, such as Los Angeles and San Francisco, which are already familiar with Alphabet’s Waymo and GM-backed Cruise vehicles. This measured approach represents a strategic pivot from Tesla’s earlier, more ambitious timelines. The company has repeatedly missed self-imposed deadlines since first promising fully driverless cars without human supervision as far back as 2016, as noted by San.com.

For insiders, the pilot signals more than a technological milestone—it’s a bellwether of Tesla’s shifting priorities and the evolving landscape of urban mobility. The rollout coincides with Tesla’s move away from developing a lower-cost electric vehicle in favor of doubling down on AI-driven projects like robotaxis and the humanoid Optimus robot. As reported by CBT News, these moonshot initiatives are increasingly central to Tesla’s long-term valuation, a factor not lost on Wall Street.

But as Tesla accelerates its autonomous ambitions, federal regulators are sharpening their scrutiny. The U.S. National Highway Traffic Safety Administration (NHTSA) is actively investigating several incidents involving Tesla’s FSD software, particularly its behavior in low-visibility conditions. Just last week, the agency requested further information from Tesla about its plans for handling adverse weather—a critical concern as the company prepares to charge riders for robotaxi services. The federal spotlight is only intensifying as Tesla aims to commercialize the technology amid ongoing safety questions, according to Axios.

Tesla’s push also holds the potential to transform the broader auto sector through software licensing. Musk confirmed to CNBC that “a number of major automakers” are in talks to license Tesla’s autonomous driving technology. “The more we demonstrate the capability of self-driving, the more that they will want to license it,” Musk explained, opening the door for Tesla’s software to become a vital industry standard, should it prove itself on the streets.

This moment arrives as Alphabet’s Waymo boasts roughly 250,000 weekly driverless rides in the U.S., demonstrating robust commercial traction in the robotaxi space. Tesla’s decision to start small—just 10 cars, geofenced to parts of Austin—stands in stark contrast to Musk’s characteristic bravado. Jalopnik characterized this rollout as “extremely limited,” highlighting the difference between lofty predictions and operational reality.

Meanwhile, Musk is reportedly stepping back from high-profile political engagements to refocus on core business initiatives at Tesla and his artificial intelligence startup xAI. The latter is currently building a massive data center in Memphis, positioning itself as a major player in the AI infrastructure space, according to CBT News.

For Tesla and the broader industry, the Austin robotaxi trial represents both a proving ground and a litmus test. The stakes are high: if the pilot delivers on safety, scalability, and public acceptance, it could accelerate the timeline for autonomous mobility nationwide and cement Tesla’s leadership in a highly competitive market. But as Tesla’s past delays and regulatory headwinds reveal, the path to driverless ubiquity remains fraught with technical, legal, and reputational risks.