Tesla has introduced a dynamic pricing system for its robotaxi service in Austin on Wednesday, replacing the fixed fare structure it rolled out last month.
The service, which launched in June to select customers at a flat rate of $4.20, was later increased to $6.90. Starting from Wednesday, pricing now varies by distance.
According to X user ‘Tslachan’, a simulated long-distance trip within the recently expanded geofenced area was quoted at $13.70. However, prices may vary during peak times.
The change comes with the release of version 25.7.10 of Tesla’s app for iOS, which includes minor fixes and improvements. The update notes that “short rides now cost less with dynamic pricing.”
Tesla has been gradually expanding the service. Last week, the company doubled the size of the geofenced operational area in Austin.
During last week’s earnings call, CEO Elon Musk said Tesla aims to have its robotaxi service reach roughly half of the U.S. population by the end of the year.
“We’re getting the regulatory permission to launch in the Bay Area, Nevada, Arizona, and a number of… Florida, a number of other places,” he said.
Musk also reiterated that a “step change improvement” is coming to Tesla’s Full Self Driving system ahead of the public rollout. However, he noted the company still needs to “validate that improvements for Austin don’t cause regressions elsewhere.”
Ahead of the expansion, Tesla last week opened job listings for vehicle operators in Tempe, Arizona, and Palo Alto, California.
The roles are part of the “vehicle data collection team” and involve driving engineering vehicles for five to eight hours per day within designated areas.
In California, Tesla must secure permits from both the Department of Motor Vehicles (DMV) and the California Public Utilities Commission (CPUC) before launching commercial ride-hailing operations.
The CPUC recently confirmed that Tesla had submitted a permit to provide transportation services for employees, but as of July 10, the company had not yet applied for a license to offer commercial services to the public.
Musk previously said the service could launch in California “probably in a month or two,” and more recently noted that deployment would begin “as soon as the regulators approve,” adding that “they are being quite reasonable.”
Tesla has said it ultimately aims to have “hundreds of thousands, if not over a million” self-driving vehicles operating in the U.S. by the end of next year.
