Image Source: Unsplash

Key Takeaways

• Tesla CEO Elon Musk announced robotaxis will be widespread across the U.S. by the end of 2026, though it should be noted that he has a history of missing similar deadlines
• Tesla launched its fully driverless robotaxi service in Austin with no safety monitors, matching competitors like Waymo and Zoox
• Barclays raised Tesla's price target to $360 from $350, maintaining an Equal-weight rating after the driverless milestone
• Tesla operates only 30-50 robotaxis in Austin thus far, which is far below Musk’s October 2025 target of 500 vehicles by year-end
• The company faces stiff competition from Alphabet-backed Waymo, which operates in 5 U.S. markets, and Amazon-owned Zoox

Tesla’s robotaxi service hit a new milestone this week. The company started offering rides without safety monitors in Austin.

🚨BREAKING🚨

Tesla ( $TSLA) has removed the safety driver for its Austin Robotaxi fleet, now fully open to the public. pic.twitter.com/q1HAWar49U

— Jimmy (@M44_1RJ) January 22, 2026

Elon Musk shared the news on X. He congratulated the Tesla AI team for the achievement. This marks the first time since the service launched in June 2025 that passengers can ride without a human backup driver.

The timing comes along with Musk’s latest prediction. Speaking at the World Economic Forum in Davos, he claimed Tesla’s robotaxis will be widespread across the U.S. by the end of this year.
 

(Click on image to enlarge)

Image Source: KnockoutStocks

It’s a familiar pattern. Musk has been making similar promises for years.

In 2019, he told investors he was “very confident” Tesla could roll out robotaxis by 2020. In July 2025, he predicted autonomous ride-hailing would reach half the U.S. population by year-end. That didn’t happen. Last October, Musk said Tesla should have 500 robotaxis in Austin by year-end. By November, he revised that number down to about 60.

The Reality On The Ground

The actual rollout has been slower than promised. According to Barclays, Tesla operates approximately 30-50 total vehicles in Austin seven months after launch. Only about 10 vehicles run at the same time. The rest of the fleet still uses safety monitors.

Ashok Elluswamy, Tesla VP of AI software, explained the approach. The company will start with a few unsupervised vehicles mixed into the broader fleet. The ratio will increase over time.

Barclays noted that robotaxi availability has been limited due to high demand and the small fleet size. Tesla previously stated that removing safety monitors was necessary before scaling. The labor costs were too high otherwise.

The company launched a ride-share service in San Francisco, but those cars are driven by humans. Tesla hasn’t obtained permits to test or run vehicles without human drivers on California public roads.

Market Competition Heats Up

Tesla faces tough competition in the driverless vehicle market. Waymo dominates in the West and operates in 5 U.S. markets. The company even launched service in Miami this week. Meanwhile, Baidu’s ApolloGo leads in China, and Amazon-owned Zoox entered the space in 2025.

Surveys from the Electric Vehicle Intelligence Report show U.S. consumers remain skeptical about robotaxis. Safety concerns top the list.

Additionally, California regulators found Tesla engaged in deceptive marketing around driverless capabilities late last year. The company did not respond to requests for comment about their robotaxi service.

Analyst Response

Barclays raised its Tesla price target to $360 from $350. The firm maintained an Equal-weight rating on the stock. Tesla ended the week trading at $449.06 with a P/E ratio of 308.95. InvestingPro analysis suggests the stock may be overvalued.

During his Davos appearance, Musk made other predictions. He said Tesla would sell Optimus robots to the public by the end of 2027. He also predicted AI might be smarter than any human by the end of this year or next.

Tesla began testing vehicles without safety drivers in mid-December. The fully driverless launch came about one month later.

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