Mr. Musk says the driverless taxis could begin ferrying passengers on Sunday in Austin, Texas, where other companies already have similar cars on the road.

The other big aspect that Musk wants to incorporate -- the Airbnb aspect -- is enabling Tesla owners to essentially rent out their vehicles to the fleet. Late last year, Gary Black, the renowned managing partner of The Future Fund, tweeted that Tesla owners could potentially earn $40,000 per year by renting out their Teslas to the robotaxi fleet.

Tesla's robotaxi service could have as few as 10 cars and might not be available to use in high-traffic parts of Austin.

The robotaxis will only operate in areas of Austin that Tesla considers safe. Additionally, all cars will be monitored by teleoperators who can take control if any issues arise.