Tesla initiated unsupervised robotaxi rides in Austin, Texas, on January 22, 2026, advancing its driverless ambitions amid a Full Self-Driving (FSD) subscription overhaul effective February 14, plans for Optimus humanoid robot sales by end-2027, falling vehicle deliveries, and intensifying regulatory probes.
Tesla began unsupervised robotaxi operations in Austin on January 22 using modified Model Y vehicles equipped with advanced FSD software. This marks a progression from the supervised service launched in July 2025, with a small portion of rides now driverless—without front-seat safety drivers—backed by chase vehicles, while most retain supervisors. Tesla VP of AI software Ashok Elluswamy stated the share of unsupervised operations will grow. The company rapidly expanded its fleet, adding 40 Model Ys over the past nine days (23 in Austin), reaching a tracked total of about 240 vehicles, including 72 in Texas. Morgan Stanley described the safety driver removal as a 'pivotal moment,' projecting 1,000 robotaxis on roads by end-2026.
At the World Economic Forum in Davos, CEO Elon Musk declared U.S. self-driving 'essentially solved,' forecasting widespread robotaxis by end-2026, and announced Optimus humanoid robots for public sale by end-2027. Prototypes currently handle simple factory tasks, with capabilities expanding to complex activities by end-2026. Optimus Gen 3 will deploy exclusively in Tesla facilities that year for data collection and safety validation. Production timelines for Optimus and the Cybercab robotaxi have shifted from early to end-2026.
Tesla discontinued the Autopilot brand—launched in 2014 with features like traffic-aware cruise control and Autosteer—rebranding its basic version as standard Traffic-Aware Cruise Control in new vehicles, which include upgraded Hardware 4.5 for autonomy. FSD one-time purchases ($8,000) ended, replaced by a $99 monthly subscription (with 30-day free trial for new buyers) effective February 14, 2026. Musk noted on X that pricing will increase with capability improvements, emphasizing value in unsupervised scenarios.
Regulatory hurdles persist: A California judge ruled Tesla overstated Autopilot and FSD capabilities, imposing a 30-day manufacturing/dealer license suspension (stayed for 60 days). The NHTSA extended its FSD review to February 23. Further challenges loom in Europe and China, alongside ongoing safety investigations.
These initiatives coincide with an 8.5% year-over-year decline in vehicle deliveries, overtaken by China's BYD as the top global EV seller. Tesla's stock showed mixed performance (+2.6% past week, -7.5% past 30 days, +10.4% past year at ~$449/share). Separately, insurer Lemonade introduced FSD-based policies offering up to 50% per-mile savings for Tesla owners in Arizona (January 26) and Oregon (February), citing reduced risk in autonomous mode.
The developments signal Tesla's pivot to an AI and robotics platform, challenging Waymo and others, though execution risks, margins, scaling beyond Austin, and competition remain key concerns.
