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Tesla has been working on modified Model Ys for its Robotaxi program

Tesla has been working on modified Model Ys for its Robotaxi program.
Tesla has been working on modified Model Ys for its Robotaxi program. AP Photo/Eric Gay
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Inside Tesla's Austin factory, employees have built modified Model Ys for the company's high-stakes Robotaxi program, sources with knowledge of the matter told Business Insider.

The project, internally referred to as "Halo," involves cars with slightly different parts than the Model Ys that consumers can buy, the insiders said. Among other things, the Halo vehicles have self-cleaning cameras and extra protection for the cameras to prevent damage and debris, one person said.

The vehicles also have a second telecommunications unit in addition to the unit normally built into the Model Y, one person said. The units provide GPS coordinates for the vehicle and allow it to connect with remote operators.

Elon Musk told investors during the company's earnings call in April that Tesla would use remote operators who could intervene in the event of an emergency. AI engineering lead Srihari Sampathkumar posted a picture that appeared to show desks with steering wheels at Tesla's offices on Sunday.

Tesla plans to incorporate the Halo vehicles into its fleet later this year, sources with knowledge of the matter said. For its June 22 launch, Musk's automaker used Model Ys with self-cleaning cameras, as spotted by some observers on social media. Earlier this year, Tesla said on X it was working on a solution to keeping its cameras clean.

Musk has said that Tesla's Robotaxi operates solely off the cameras, and does not include LiDAR or radar sensors, unlike other self-driving companies.

Tesla did not respond to a request for comment.

Tesla rolled out its Robotaxi service to a select group of users. Shortly after the release, early invitees posted reviews on X and YouTube. Wedbush analyst Dan Ives said in a note to investors that his experience exceeded his expectations.

"The ride itself was completely smooth, and it was indistinguishable that the car was driverless as there was never a moment in the vehicle where we felt as if it did something irrational," he wrote.

For now, Tesla's Robotaxis will operate within a geofenced area in Austin. In addition to the remote operators, a human safety monitor sits in the passenger seat and can push buttons on the central screen to pull over or stop the vehicle. These buttons are also accessible to passengers via the screen in the rear of the vehicle.

The monitor also appears to be in communication with Tesla's remote safety drivers, according to one video posted to YouTube.

Musk said during the April earnings call that the company will start out with about 10 to 20 Robotaxis, with plans to expand further over time.

On launch day, Musk posted a picture of himself celebrating with the AI team. Shares of Tesla's stock were up 8% the day after the launch.

Musk has said that the self-driving software will allow Tesla owners to one day lease out their vehicles as robotaxis. Currently, Tesla owners can purchase a beta version of the company's Full Self-Driving software that requires a licensed driver to monitor the vehicle for $99 per month.

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Grace Kay
Grace Kay was a Correspondent on Business Insider’s enterprise desk, where she covered the inner workings of Tesla, Elon Musk’s AI startup, xAI, and the broader robotics and electric vehicle industries.Her stories have been cited by multiple publications, including Reuters, Bloomberg, and CNBC. Before joining Business Insider, she worked at Bloomberg and Forbes.Tesla: Inside 'Project Rodeo,' the Tesla effort pushing the limits of self-driving technologyInternal Tesla salary database shows Elon Musk's strategy: Lower salaries, bigger stock grantsTesla tells staff it plans to roll out its Robotaxi service in San Francisco this weekendTesla has been working on modified Model Ys for its Robotaxi programTesla prioritizes Musk's and other 'VIP' drivers' data to train self-driving softwareAshok Elluswamy is the most powerful Tesla executive you've never heard ofxAI:Internal documents reveal how Elon Musk's xAI trains Grok to be the anti-woke chatbotXAI's Macrohard project stalls as Tesla ramps up a similar AI agent effortElon Musk's xAI plans to supply computing power to coding startup CursorWar rooms, group chats, and video games: Inside Elon Musk's AI startupBehind Grok's 'sexy' settings, workers review explicit and disturbing contentElon Musk's xAI lays off hundreds of workers tasked with training GrokEVs and robots:Fisker employees are fixing some customers' cars with parts from the company's vehicle 'graveyard,' sources sayFisker Ocean reservation cancellations top 40,000 as the EV company tries to fight off bankruptcy, leaked data showsInside the downfall of Henrik Fisker's second automotive startup, which just filed for bankruptcyInside the glass-walled Tesla lab where workers train the Optimus robot to act like a humanInside OpenAI's renewed push into robotics