Tesla Robotaxi on display

Tesla Expands Robotaxi Service Area In Austin, Fleet Size Up 50% Amid FSD Scrutiny, Elon Musk's Autonomous Cab Goals

Tesla Inc. TSLA has expanded its service area in Austin amid Elon Musk's ambitious target of serving half the population of the U.S. by the end of 2025.

Tesla Robotaxi Now Covers More Ground

Taking to the social media platform X on Tuesday, Tesla announced it was expanding its footprint in Austin. "Increased service area from 91 to 173 sq miles," the company said in the post. Tesla also added that it has increased the fleet size "by 50%"

It’s worth noting that Tesla initially deployed 10-20 Robotaxis during the Austin launch event in June. Assuming 20 Robotaxis were operational in the city so far, a 50% increase would take the fleet size to 30 Robotaxis.

Source: Tesla Robotaxi via X

Tesla's Ride-Hailing Expansion

The news comes as Tesla recently announced it had successfully acquired a permit to operate Robotaxis in Texas, giving a much-needed boost to the company's partially autonomous cabs in Austin, which operate with a safety driver on board.

FSD's Legal Troubles, Elon Musk Defends Camera-Only Approach

However, FSD, which forms the basis of Tesla's Robotaxi ambitions, has been under legal scrutiny in two separate lawsuits. A California judge had recently certified a class action suit against Tesla for allegedly "misleading" customers about FSD's capabilities.

Meanwhile, the company also faces a legal challenge from investors, who have expressed concerns over the FSD and Robotaxi's safety and capabilities following possible traffic violations occurring during the June launch event in Austin.

On the other hand, Musk has defended Tesla's vision-only approach for its self-driving cars, following Uber Technologies Inc. UBER CEO Dara Khosrowshahi's comments saying that developing the technology without LiDAR could be "very difficult."

Tesla scores well on Momentum and Growth metrics, while offering satisfactory Quality, but poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today!

Photo Courtesy: Josiah True on Shutterstock.com

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