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Tesla self-driving cars face real-world test in Las Vegas tunnels

by Rena Tran
August 28, 2025
in Business
Tesla self-driving cars face real-world test in Las Vegas tunnels

Patrick Fallon—Getty Images

“We’re testing autonomy underground, but it’s not ready yet”

Tesla’s ambitious self-driving technology has found an unusual testing ground: the subterranean tunnels built by Elon Musk’s Boring Company beneath Las Vegas. Within the network known as the Vegas Loop, Tesla vehicles shuttle convention-goers between destinations at the Las Vegas Convention Center. But according to convention executives, while progress is being made, fully autonomous driving is still far from reality.

The current system, which uses Tesla Model Ys and Model 3s, still requires human drivers to operate the cars. The long-term vision is a fleet of fully self-driving Teslas navigating the tunnels without human intervention, creating a seamless transportation alternative to surface traffic. But as one convention center leader admitted, “full autonomy is still a ways off.”

“The technology works in controlled environments, but there are limits”

In the tunnels, Teslas drive at speeds of around 35 mph, transporting thousands of passengers during large events. For riders, the experience feels futuristic, cars zipping through colorfully lit tunnels designed for efficiency. Yet the human presence behind the wheel underscores the challenges that Tesla faces in delivering true autonomy.

While Tesla’s Full Self-Driving (FSD) software has been rolled out to tens of thousands of customers in beta, experts highlight that urban driving conditions, edge-case scenarios, and safety regulations remain significant hurdles. In the controlled environment of the Vegas Loop, some of those challenges are reduced, but not eliminated.

Industry analysts argue that autonomy works best in highly predictable environments like tunnels or private campuses. But scaling that to complex, real-world city streets is an entirely different challenge.

“Vegas wants innovation, but safety comes first”

The city of Las Vegas has long embraced bold experiments in transportation and entertainment, and the Boring Company’s underground system is no exception. Officials have spoken enthusiastically about expanding the Vegas Loop to connect casinos, the airport, and even suburbs.

Still, convention executives emphasize that safety and reliability come before spectacle. A spokesperson noted that while they welcome Tesla’s innovation, they will not move to a driverless fleet until regulators and operators are confident the system can handle all conditions.

This cautious approach reflects broader concerns across the autonomous vehicle industry, where companies such as Waymo and Cruise have faced both breakthroughs and setbacks in rolling out robo-taxis.

“The dream is still alive, but patience is required”

For Elon Musk and Tesla, the Las Vegas tunnels are more than a transportation system, they are a stage to demonstrate the potential of self-driving technology. If Tesla can prove reliability in a structured, semi-public setting, it could bolster confidence in its broader autonomy push.

However, as convention leaders point out, timelines need to be realistic. The industry has repeatedly promised self-driving cars “next year” for nearly a decade. What’s clear now is that progress is incremental, and patience will be essential.

The Vegas Loop offers a glimpse of the future, but the reality is that drivers will remain behind the wheel for some time to come. As one executive summarized, “This is the future, but it’s not here just yet.”

Related posts:

  1. Perplexity CEO mantra: How an Elon Musk mindset fueled a $9B AI challenger
Tags: autonomous vehiclesBoring CompanyElon MuskLas Vegasself-driving carsTeslaVegas Loop
Rena Tran

Rena Tran

Staff writer and editorial researcher at Millionaire News, a business publication covering entrepreneurs, founders and executives across global markets. Rena covers founder stories, startup ecosystems and emerging business leaders across Asia, the Middle East and beyond.

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