Tesla has rolled out a new dynamic pricing system for its Robotaxi service in Austin, replacing the flat-rate fare structure that has been in place since the service launched in June. The change introduces variable fares based on trip distance, offering lower prices for short rides and higher prices for longer trips.
The Robotaxi service, which debuted in Austin on June 22, initially charged a flat rate of $4.20 per ride, a not-so-subtle nod to one of Elon Musk’s favourite numbers. Just weeks later, Tesla increased the fare to $6.90 as the company expanded its geofence to allow Robotaxi to service a larger area, including downtown Austin, the University of Texas, and neighbourhoods north of downtown.
Now, with version 25.7.10 of the Robotaxi app, Tesla is shifting to a per-mile structure that better reflects the distance traveled. The update also included minor fixes and improvements.
A fare chart compiled by X user @Tslachan illustrates the new pricing model. For example, a short trip of less than a mile from an Airbnb to Loro Bar costs $2.10, while a 9-mile trip is priced at $12.04. Trips ranging between 5 to 8 miles cost between $7.94 and $12.60.
The longest Robotaxi ride tested by @Tslachan covered nearly the entire north-to-south distance of the Robotaxi service area. This ride was 11 miles and cost $13.71.
Why Dynamic Pricing?
The move to dynamic pricing makes sense as it aligns Tesla’s Robotaxi model more closely with traditional ride-hailing services like Uber and Lyft, and legacy taxis, which charge based on distance and time rather than a flat rate. By offering lower prices for shorter trips, Tesla aims to encourage more spontaneous rides, while still maintaining profitability for longer journeys.
Since the launch of Robotaxi, Tesla has introduced several app updates to improve the service, including the ability to edit destinations after booking. The company has also updated the app to show visual cues on where the user should walk to in order to reach their pickup point.
After launching in Austin, Tesla is now eyeing the Bay Area and Arizona for the next phase of its Robotaxi service. A recent in-app notification suggests the Bay Area launch could happen soon. However in that location the service will feature a safety driver in the driver’s seat—unlike Austin, where a safety operator rides in the passenger seat.
