Tesla (NASDAQ:TSLA) saw a modest increase in premarket trading on Monday as it introduced its pilot Robotaxi service in Austin, Texas. The initial phase involves a small fleet of 10 to 20 Model Y vehicles operating within designated geo-fenced areas across the city.

This autonomous ride-hailing initiative currently excludes airport routes and incorporates multiple safety measures, including a human safety attendant seated in the front passenger position and remote monitoring from off-site supervisors. Notably, the in-car safety monitor does not intervene in vehicle control during rides.

Investor reaction has been relatively muted, with analysts at RBC Capital Markets pointing out that the general concept of this launch was largely expected. The distinguishing factor highlighted by RBC is the dual oversight system combining onboard safety attendants and remote supervision.

RBC reiterated its belief that autonomous driving technology remains a key driver of Tesla’s long-term value, potentially representing up to 60% of the company’s future market capitalization. They also noted Tesla’s camera-centric, machine-learning approach—eschewing costly lidar and radar hardware—could provide a significant cost advantage compared to other players in the autonomous vehicle space.

On the ground, Wedbush analysts who experienced the service in Austin described it as “a window into the future.” They complimented the ride’s smoothness and the system’s ability to navigate challenging traffic conditions, such as narrow, congested streets with various obstacles.

Coinciding with Tesla’s rollout, Texas lawmakers passed a new regulation requiring autonomous vehicle operators to obtain regulatory approval before launching fully driverless services, effective September 1.

While Tesla’s trial fleet does not yet feature the company’s upcoming custom-designed “cybercab,” experts view this launch as a milestone signaling the beginning of Tesla’s broader ambitions in AI-driven transportation.