In ramping up robotaxi service, Tesla is hoping to slingshot past Waymo, another autonomous car service that operates in Phoenix, San Francisco, Los Angeles and Austin, according to its website. Last week, Waymo applied for a permit to test its vehicles in New York City.

Tesla is worth more than most of its biggest rivals combined, and Musk has said that is supported by the company's future ability to create robotaxis and humanoid robots. For years, he has promised self-driving cars were just around the corner.

Tesla is expected to begin offering robotaxi service Sunday in Austin, an initial step that Elon Musk's backers believe could lead to the company's next growth wave.