San Francisco is likely to prove a more challenging area for Tesla’s self-driving systems. The city is significantly more densely populated and has more challenging roads, largely due to its extreme topography and steep streets.

Tesla's latest robotaxi announcement is putting pressure on Waymo. Discover how Tesla's rapid expansion into Austin and upcoming Bay Area launch intensifies the self-driving rivalry.

Elon Musk, in classic fashion, unleashed a wave of hype and headlines on Wednesday when he casually posted on X that Tesla’s autonomous taxi service — which launched in minimal form in Austin, Texas, in June — is on its way to the Bay Area. “Waiting on regulatory approvals,” he posted, “but probably in a month or two.” Don’t hold your breath.

In Austin, Tesla currently operates its robotaxi service using modified Model Y vehicles, charging riders a flat $4.20 per trip. The service is available to a small group of pre-selected passengers and operates only in clear weather conditions.

CNBC went to Austin, Texas, to check out the supervised, invitation-only launch of no more than 20 of Tesla‘s robotaxis. CEO Elon Musk once promised Tesla would be able to drive themselves and owners would be able to rent out their vehicles for rideshare.

The three autonomous driving experts told Business Insider about how they think the launch went, and what may have prompted some issue.

Tesla’s robotaxi push faces safety flaws, legal risks, and issues in Austin, casting doubt on its autonomy vision. Learn why TSLA stock is a sell.

Terrifying new footage shows a Tesla robotaxi ripping through partially flooded streets in Austin, Texas. The clip, which went viral on the r/SweatyPalms subreddit over the weekend, shows the modified Model Y blasting past far more carefully driving vehicles in the right lane.