Tesla CEO Elon Musk unveiled a long-anticipated robotaxi, featuring two gull-wing doors and lacking a steering wheel or pedals, at an event on Thursday. The announcement marked a shift in Tesla’s strategy, moving from producing low-cost mass-market vehicles to focusing on robotic transportation.
During the event, Musk arrived in the “Cybercab,” set to begin production in 2026 at a projected price of under $30,000. He also introduced a robovan capable of transporting up to 20 passengers, although he provided limited information about it.
Musk, known for his optimistic timelines, did not specify how quickly Tesla would ramp up production of the robotaxi, address regulatory challenges, or implement a business strategy to surpass competitors like Alphabet’s Waymo.
Industry analysts noted that establishing a robotaxi service could take years, emphasizing the need for safety and reliability. They pointed out the challenges posed by accidents, adverse weather conditions, complex intersections, and pedestrian behavior.
Speaking at Warner Bros. Studio near Los Angeles while wearing a leather jacket, Musk stated that autonomous vehicles could be ten times safer than human drivers and could operate five to ten times longer. “The autonomous future is here,” he declared. “With autonomy, you get your time back.”
Musk previously expressed his intention to operate a fleet of self-driving Tesla taxis available for passengers to hail via an app. He also suggested that individual Tesla owners could list their vehicles as robotaxis to earn income, though he did not mention the app during the event.
The unveiling, titled “We, Robot” as a nod to Isaac Asimov’s “I, Robot” stories, reiterated Musk’s vision of Tesla as an AI robotics company rather than merely an automaker. The presentation began nearly an hour late due to a medical emergency involving an attendee and lasted under 30 minutes, attracting around four million viewers on Musk’s X social media platform.
Equity trader Dennis Dick from Triple D Trading expressed disappointment, stating, “I’m a shareholder and pretty disappointed. I think the market wanted more definitive timelines. I don’t think he said much about anything.”
Musk mentioned that the operating cost for the Cybercab would be 20 cents per mile, with inductive charging requiring no plugs. The robovans would have an even lower operating cost of 5 cents per mile.
The vehicles will depend on artificial intelligence and cameras instead of the lidar technology used by many competitors, which experts have noted can present technical and regulatory challenges.
In addition to the vehicles, Musk highlighted significant progress with Tesla’s humanoid robot “Optimus,” which may be priced between $20,000 and $30,000 and capable of performing various daily tasks.
Musk had previously claimed in 2019 that operational robotaxis would be available by 2020. This year, however, he shifted his focus to the Cybercab and abandoned plans for a smaller, less expensive vehicle, which many viewed as essential for countering declining EV demand.
Tesla risks experiencing its first-ever decline in deliveries this year, as buying incentives have not sufficiently attracted customers to its aging EV lineup, according to calculations by Reuters based on third-quarter earnings. Price reductions aimed at mitigating high-interest rates have also pressured profit margins.
Several companies pursuing the robotaxi market have faced substantial losses, leading some to shut down operations. Alphabet’s Waymo, with approximately 700 Jaguar Land Rover vehicles in its fleet, is currently the only U.S. company operating uncrewed robotaxis that charge fares.
Amazon’s Zoox is testing uniquely designed vehicles resembling toaster ovens on wheels, which lack manual controls, while General Motors’ Cruise has indefinitely postponed plans for its self-driving “Origin” vehicle.
Tesla’s current approach to full self-driving technology requires constant driver oversight but helps keep costs low. However, it has faced legal scrutiny due to at least two fatal accidents involving this technology.
Musk stated, “We do expect to start fully autonomous unsupervised FSD in Texas and California next year,” specifically mentioning the Model 3 and Model Y. He did not clarify whether the Cybercab would utilize existing FSD technology or a new system.
Jessica Caldwell, head of research at car buying website Edmunds, remarked, “Musk did a fantastic job of painting an ideal future for transportation that promises to both free up our time and increase safety. But many questions remain about how this will be achieved from a practical standpoint.”
