Tensor, MTZ Sign LOI to Deploy Up to 500 Autonomous Taxis in Germany

Tensor Auto Inc., an American physical AI company and developer of the Tensor Robocar, and Munich taxi operator Münchner Taxi Zentrum (MTZ) announced a letter of intent (LOI) on October 27, 2026, to deploy Tensor Robocars as autonomous taxis in Germany, with an initial fleet of up to 500 vehicles in German cities and MTZ operating the service.

The companies disclosed the plan at the Madrid Autonomous Mobility Summit, where MTZ chief executive Gregor Beiner and Tensor chief business officer Hugo Fozzati were pictured with the Robocar. The announcement describes MTZ as Munich’s largest taxi operator.

An Operator-Led Business Model

Under the structure outlined in the announcement, the taxi operator runs the service and keeps its customer relationships and brand, while Tensor sells the Robocar and provides autonomous driving as a recurring subscription it calls Autonomous Driving as a Service, or ADaaS. Control of the fleet, the customer and the data stays with the taxi company, an arrangement the announcement frames as keeping that control in Europe.

Tensor said it selected MTZ for its well-established regulatory relationships, its approval for commercial operations and more than 40 years of operating experience in Munich. MTZ would operate the Robocars under its own brand as part of its taxi service, and the companies said other taxi operators across Europe could adopt the same model. The Robocar is designed to integrate with MTZ’s existing dispatch systems, so riders would book and ride with MTZ as they currently do; in collaboration with the city, MTZ decides where, when and how its autonomous fleet runs. Under the model, Tensor supplies the autonomous driving software, fleet-management tools, ongoing service and training through the ADaaS subscription, while MTZ operates the vehicles.

Fleet financing would come from financial institutions working with mobility operators and taxi companies, an arrangement the companies characterize as enabling rapid scaling while creating a new asset class in European mobility. Operators such as MTZ would manage day-to-day service operations.

Fleet Targets and European Expansion

Beyond the initial 500-vehicle target in Germany, the partners said they aim to place 10,000 additional Robocars with European operators within 24 months of the Robocar becoming available in Europe. The announcement says the partnership has access to a large industry network through Beiner’s roles in the taxi sector; he chairs Taxis 4 Smart Mobility, or T4SM, a coalition of taxi organisations from six European countries that the companies said could adopt the same operator-led model. The partner structure starts in Germany and expands across Europe as targets are met.

The LOI also has the two companies exploring sales of Robocars to private buyers in Germany. The announcement cites a potential market of about 50,000 taxis currently in Germany and about 500,000 across Europe.

Tensor founder and chief executive Jay Xiao said autonomous driving will transform urban mobility, and that Tensor is building the technology and partner ecosystem needed to deliver safe, premium Robocar services at scale. He called MTZ an important partner for bringing Robocar services to Germany and expanding across Europe. Beiner said the taxi industry has a leading part to play in bringing sustainable autonomous driving to Europe. He said MTZ will run autonomous vehicles in Munich under its own name while maintaining service quality and control over customer data, and added that professional drivers remain indispensable in situations that call for personal assistance or a human touch.

The Tensor Robocar

The announcement describes the Robocar as purpose-built for autonomy rather than converted from an existing car, and as built to the more demanding standards required for personal ownership. Tensor presents that dual-purpose design as an advantage for both operators and riders in taxi service.

According to Tensor, the vehicle is designed to run automated maintenance checks and clean its own sensors, then park itself with the sensors shielded, cutting the time it spends in the depot. Tensor also describes the Robocar as driven by agentic AI that, rather than simply following pre-programmed rules, reasons about its surroundings, understands what a rider asks and acts on it. The company said passengers will be able to talk with the vehicle in natural language, asking it to alter a route, make an extra stop or answer questions.

The initial German deployment is subject to definitive agreements between the companies and to Level 4 regulatory approval in Germany.