Austin, Texas - 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.

The launch – which comes as Musk refocuses on his business ventures following a controversial stint in Donald Trump's administration – will employ the Model Y sport utility vehicle rather than Tesla's much-touted Cybercab, which is still under development.

The long-awaited launch follows the dramatic meltdown earlier this month in relations between Musk and Trump, which saw a cascade of bitter attacks from both men.

Since then, Musk has publicly expressed regret for some of his statements, while his company's Texas operation has readied the Austin push – part of a major drive on autonomous technology and artificial intelligence that Tesla bulls believe will yield huge profits.

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This group includes Wedbush analyst Daniel Ives, who said autonomous technology could be a catalyst for potentially $1 trillion in additional market value or more.

"There are countless skeptics of the Tesla robotaxi vision with many bears thinking this day would never come," said Ives, who predicted that Trump's administration would clear roadblocks for Tesla and pivot from the recent "soap opera."

"The golden era of autonomous for Tesla officially kicks off on Sunday in Austin," Ives said in a note Friday.

In picking Austin for the debut of the autonomous vehicle (AV) service, Musk is opting for a US state known for its company-friendly approach to regulation.

"Texas law allows for AV testing and operations on Texas roadways as long as they meet the same safety and insurance requirements as every other vehicle on the road," the Texas Department of Transportation told AFP.

An Austin website listed six autonomous vehicle companies at various stages of operation: ADMT (Volkswagen), AVRide, Tesla, Zoox (Amazon), Motional (Hyundai), and Waymo (Alphabet/Google).

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But the Texas legislature this year enacted a new bill that requires prior authorization from the state's Department of Motor Vehicles before companies can operate on a public street without human drivers, a group of seven Democratic lawmakers said in a June 18 letter to Tesla.

Citing the enhanced system, the lawmakers asked Tesla to delay testing until after the law takes effect September 1.

If Tesla proceeds with the launch this weekend, "we request that you respond to this letter with detailed information demonstrating that Tesla will be compliant with the new law," the letter said.