Tesla Robotaxi App Goes Public, China’s Robotaxi Market Grows 757-Fold in a Decade to Become the World’s Largest

On September 5, according to a report by Business Insider, Tesla officially launched its Robotaxi app on the Apple App Store. Previously, this service had only been available to early test users in Austin, Texas. The public rollout of Tesla’s Robotaxi marks an important milestone in the commercialization of autonomous driving technology. It means that ordinary users can now summon a driverless taxi through a mobile app and experience a truly autonomous ride. Industry experts note that with the continuous expansion of test areas and the refinement of service models, Tesla is expected to achieve scaled operations in the near future.

At the same time, a new research report from Goldman Sachs shows that China’s Robotaxi market will surge from USD 54 million in 2025 to USD 47 billion by 2035—a staggering 757-fold increase—making it the largest autonomous mobility market in the world. Baidu’s Apollo Go has already completed more than 14 million rides, while WeRide reported a year-on-year Robotaxi revenue growth of 836.7% in Q2. With technological breakthroughs and policy support, large-scale commercial deployment is entering a rapid growth phase.

Clearly, the race between China and the U.S. in autonomous driving is heating up.

Tesla: Radical Iteration on a Vision-Only Approach

Tesla’s Robotaxi continues to rely on its vision-only strategy, equipped with eight 5-megapixel cameras and HW4 chips delivering 500 TOPS of computing power for end-to-end autonomous driving. Tests show that the HW4.0 upgrade reduces system error rates by 47%. The vision-based neural network dynamically models environments at 36 frames per second, achieving 98.7% accuracy in complex scenarios such as construction zones and animal crossings.

Tesla’s upcoming Cybercab will be manufactured at a cost below USD 30,000, with an operating cost of only USD 0.20 per mile—an 80% reduction compared to traditional taxis. This disruptive cost advantage provides a revolutionary foundation for the shared mobility economy. In North America, a Model Y owner running a Robotaxi for 12 hours a day could earn USD 30,000 annually, close to 60% of the median household income in the U.S.

However, the vision-only system still faces challenges in low-light conditions. Nighttime highway merging scenarios have a 4.3% probability of “cognitive misalignment,” requiring continued algorithm optimization. In a July pilot in Austin, one Tesla Robotaxi unexpectedly accelerated and swerved after completing a trip, colliding with a stationary vehicle—once again raising concerns about the safety of the vision-only route.

In dimly lit alleys, visual blind spots or insufficient light can cause the system to miss obstacles. Other testers have reported sudden braking, brief wrong-way driving, misinterpreting police lights, and even “abandoning passengers in the middle of intersections”—all highlighting unresolved safety risks.

China’s Approach: Scale Advantages Through Vehicle-Road-Cloud Integration

China’s Robotaxi boom is driven by a dual engine of “vehicle-road-cloud integration” and favorable policies. Goldman Sachs points out that multi-sensor setups—including four or more LiDARs, over ten cameras, and several millimeter-wave radars—are becoming mainstream. High-performance 1550nm LiDAR (with a 300-meter detection range) is being increasingly adopted in L3+ autonomous driving.

In Wuhan’s demonstration zone, Baidu Apollo Go reduced accident rates by 62%. WeRide’s seventh-generation system has lowered hardware costs by over 70%, achieving full coverage with automotive-grade components, enabling profitability at the scale of just 1,000 vehicles.

On the policy side, China’s Ministry of Industry and Information Technology (MIIT) is accelerating autonomous driving safety standards. Cities such as Beijing and Shenzhen have established a three-tier system of “legislation–standards–insurance.” In Shanghai, pilot enterprises enjoy a 30% discount on insurance premiums. Nanjing and Hefei are advancing three-year plans for “vehicle-road-cloud integration,” upgrading 3,777 intersections with intelligent traffic signals and deploying 500 “holographic intersections” to build city-level intelligent transport networks.

Breaking the Bottleneck: Technology Iteration and Ecosystem Collaboration

Despite promising prospects, Robotaxi deployment must overcome both long-tail technical challenges and ecosystem collaboration barriers. MIIT statistics show that 22% of autonomous driving test accidents in 2024 were caused by sensor failures. A Tsinghua University simulation study confirmed that nighttime highway merging still carries a 4.3% probability of cognitive misalignment for AI-driven systems.

Operators are experimenting with hybrid business models. For example, Ruqi Mobility leverages GAC Group’s drive-by-wire platforms and a tiered maintenance network to cut maintenance costs by 30%, boosting ride orders in Nansha by 480% year-on-year. Baidu Apollo Go has partnered with CAR Inc. (Shenzhou Zuche) in a light-asset model, reducing operating costs by 40% and establishing a clear profitability path.

Goldman Sachs emphasizes that L3–L4 autonomous driving will be among the earliest and most impactful applications of robotics to achieve large-scale commercialization. As technology matures, costs decline, and regulatory frameworks improve, Robotaxi services could achieve profitability before 2030, reshaping urban mobility ecosystems. Once the cost of autonomous driving falls below that of human drivers, private vehicle usage patterns, urban road planning, and parking infrastructure will undergo fundamental transformation.

Tesla’s global Robotaxi rollout and China’s vehicle-road-cloud integration model together outline the future of autonomous mobility. The player that solves long-tail problems faster, builds public trust, and achieves scale advantages will secure the lead in the era of autonomous ride-hailing.