SAN JOSE – October 29, 2026 -- Tensor Auto Inc. and Münchner Taxi Zentrum (MTZ), Munich's largest taxi operator, have signed a letter of intent to deploy up to 500 Tensor Robocars as autonomous taxis in German cities, with a further 10,000 vehicles targeted across Europe.
The initial fleet depends on definitive agreements and Level 4 regulatory approval in Germany. MTZ will operate the vehicles under its own brand.
Operators keep the customer and data while Tensor sells the vehicle and a subscription
Tensor sells the Robocar and charges a recurring fee for Autonomous Driving as a Service (ADaaS). The subscription covers autonomous driving software, fleet-management tools, ongoing service and training. MTZ, not Tensor, operates the vehicles, and the Robocar integrates with MTZ's existing dispatch systems, so riders book as they do today.
Control of the fleet, the customer and the data stays with the taxi company, and therefore in Europe, according to the partners. In collaboration with the city, MTZ decides where, when and how its autonomous fleet runs.
Financial institutions are slated to fund fleets as a new European mobility asset class
Under the planned structure, financial institutions will finance Robocar fleets in partnership with mobility operators and taxi companies. The partners say this enables rapid scaling and creates a new asset class in European mobility.
Partners target 10,000 additional Robocars within 24 months of European availability
Germany has about 50,000 taxis and Europe about 500,000. The partners aim to place 10,000 additional Robocars with European operators within 24 months of the vehicle becoming available in Europe. The structure starts in Germany and expands as targets are met.
MTZ CEO Gregor Beiner chairs Taxis 4 Smart Mobility (T4SM), a coalition of taxi organisations from six European countries whose operators could adopt the same model. He is also president of the German Federal Association of Taxi and Private Hire Vehicles. The LOI also covers exploring Robocar sales to private buyers in Germany.
Tensor chose MTZ for its regulatory ties, commercial approval and 40 years in Munich
Tensor cited MTZ's established regulatory relationships, its approval for commercial operations and more than 40 years of operating experience in Munich. MTZ has more than 150 employees and launched one of Germany's first all-electric premium taxi fleets in 2018, supported by its own fast-charging infrastructure.
Beiner said professional drivers "remain indispensable" wherever personal service or assistance is needed.
Purpose-built SAE Level 4 design targets higher vehicle utilisation
Tensor says the Robocar is built for autonomy from the ground up, unlike robotaxis converted from existing cars, and meets the higher standards required for personal ownership. It is designed to run automatic maintenance checks, clean its own sensors, and park and shield its sensors automatically, which Tensor says keeps vehicles in service longer and out of the depot.
The vehicle runs on agentic AI. Riders can speak to it to change the route, add a stop or ask a question.