Tesla CEO Elon Musk on Thursday unveiled the long-awaited Robotaxi with two gull-wing doors and no steering wheel or pedals, and surprised with a Robovan, betting on shifting the focus from cheap mass-market cars to robotic vehicles.
During an impressive presentation, Musk rode onto the stage in a “Cybercab”, which will be produced from 2026 – ultimately in large quantities – and whose price will not exceed USD 30,000. He then introduced the Robovan, which can accommodate up to 20 people, although he provided few further details.
However, Musk, who has a history of missing forecasts – and has himself said he is optimistic about the timeline – did not say how quickly Tesla could ramp up Robotxi production, clear inevitable regulatory hurdles, or implement a business plan to overtake Robotxi rivals such as Waymo alphabet.
Analysts and industry experts say robotics could take years to implement, especially given the need for safety and reliability. They pointed to accidents as well as the difficulty of technology in responding to scenarios such as inclement weather, complex intersections and pedestrian behavior.
But Musk, wearing a leather jacket and speaking to a crowd at the Warner Bros. studios outside Los Angeles, said autonomous cars could be 10 times safer than those driven by humans and run five to 10 times longer.
“The autonomous future is here,” Musk said. “With autonomy you get your time back.”
Musk has previously said he plans to operate a fleet of autonomous Tesla taxis that passengers can hail via an app. He said individual Tesla owners will also be able to monetize the app by listing their vehicles as robots. He made no mention of the app during Thursday's event.
From a car manufacturer to an AI robotics company
The event, titled “We, Robot,” is an apparent nod to Yes, Robot science-fiction stories by American writer Isaac Asimov – echoed Musk's comment that Tesla “should be seen as an AI robotics company” rather than a car manufacturer.
It began after a nearly hour-long delay, which Musk attributed to a medical emergency involving a participant. The presentation, prepared for months, lasted less than half an hour and was watched by approximately four million people on Musk's X social media platform alone.
“I am a shareholder and I am quite disappointed. I think the market wanted a more definitive time frame,” said stock trader Dennis Dick of Triple D Trading. – I don't think he talks much about anything.
The Cybercab will cost 20 cents a mile to operate, and charging will be inductive and require no plugs, Musk said. Operating robovans will be even cheaper – five cents per mile.
Experts skeptical
The vehicles will rely on artificial intelligence and cameras, rather than hardware common among robotxi rivals such as lidar – an approach considered by experts to be challenging from both a technical and regulatory perspective.
In addition to vehicles, Musk touted the “great progress” made with the Optimus humanoid robot, which could eventually be priced between $20,000 and $30,000 and can perform many everyday tasks.
Musk said in 2019 that he was “very confident” Tesla would have operational robotaxis by 2020. This year he focused on the Cybercab and abandoned plans to build a smaller, cheaper car widely seen as necessary to counter slowing vehicle demand electric.
Tesla is facing its first-ever drop in deliveries this year as purchasing incentives have failed to attract enough customers to its aging electric vehicle lineup, according to Reuters calculations based on third-quarter results. Price cuts to offset high interest rates have also reduced profit margins.
Several companies trying to break into the robotxi market have suffered billions in losses, forcing some to close their operations.
Alphabet-owned Waymo, which has about 700 Jaguar Land Rovers in its fleet, is the only U.S. company operating unmanned robots that charge tolls.
Autonomous driving technology
Amazon Zoox is testing specially designed vehicles that resemble toasters on wheels and lack manual control. General Motors' Cruise, which uses the Chevrolet Bolt EV, this year indefinitely suspended plans to develop the Origin autonomous vehicle without scrutiny.
Tesla's approach to fully autonomous driving technology in its current version requires constant attention from the driver, but allows for lower costs. However, it has faced legal scrutiny over at least two fatal accidents involving the technology.
“We expect to launch fully autonomous, unattended FSD in Texas and California next year,” Musk said. “The same goes for the Model 3 and Model Y.”
He did not say whether Cybercab uses FSD or new technology.
