Tesla CEO Elon Musk recently unveiled the highly anticipated Cybercab, the company’s first robotaxi, at an event held at Warner Bros Studios in Burbank, California.
This innovative vehicle, designed with two wing-like doors and devoid of pedals or a steering wheel, spotlighted Musk as he addressed a captivated audience eager for insights into what he deems a pivotal project for Tesla’s future.
During the “We, Robot” event, Musk emphasized his belief that fully autonomous vehicles would surpass human drivers in safety and could potentially generate income for owners through ride-sharing.
However, Tesla’s stock price reflected investor skepticism, experiencing a decline of over eight percent shortly after the market opened on Friday, dipping to around $219.
In contrast, shares of ride-hailing competitors saw increases, with both companies rising by up to 10% as they advance their own self-driving initiatives.
Questions have arisen about Musk’s timeline for Cybercab production, projected to start “before 2027,” in light of his previous struggles to meet deadlines.
“I tend to be optimistic with time frames,” Musk remarked during the presentation.
The Cybercab is expected to retail for less than $30,000 (£23,000), positioning it to compete against autonomous vehicles from companies like Waymo.
However, analysts express doubts about the feasibility of this price point. “Launching a new vehicle at that price within the given timeframe will be extremely challenging,” stated Paul Miller from Forrester Research.
“Without external subsidies or selling vehicles at a loss, it appears unlikely that Tesla can make this pricing work in this decade,” he added.
Safety Concerns
Musk predicted that “fully autonomous unsupervised” technology would be available in Tesla’s Model 3 and Model Y in Texas and California next year, pending regulatory approval.
However, such approval is uncertain. “There are significant safety concerns about a large piece of machinery operating on highways,” remarked Samitha Samaranayake, an engineering professor.
Tesla’s approach to self-driving technology relies on cost-effective cameras rather than radar or Lidar sensors, the latter being integral to many competitors’ solutions.
The company aims to leverage artificial intelligence trained using vast amounts of data collected from its existing fleet.
However, experts in the field are not completely convinced that Tesla’s methodology can provide the necessary safety assurances.
Playing Catch-Up
The Cybercab project has experienced delays, initially scheduled for release in August.
This summer, Musk attributed the postponement to crucial design alterations.
Meanwhile, rival robotaxis are already operational on U.S. roads.
As competition intensifies in the electric vehicle sector, Tesla appears poised for its first annual sales decline despite softened sales overall.
Despite these challenges, the event featured engaging displays, including Tesla’s humanoid robots entertaining attendees.
Musk also introduced a prototype for a “Robovan” capable of transporting up to 20 passengers.
Experts believe the Robovan could become a significant Transportation solution for Tesla in the coming years.
“Can you imagine seeing this vehicle on the streets? That would be incredible,” Musk stated as Tesla’s Robovan was showcased.
Some analysts view the event as both a nostalgic glance back and a foreshadowing of Tesla’s future.
Musk painted an optimistic vision for transportation that promises enhanced safety and more free time for users.
However, persistent doubts linger regarding the practical execution of this vision.
Current State of the Robotaxi Market
The deployment of robotaxis has faced challenges, including the suspension of driverless vehicles operated by GM’s Cruise in San Francisco following a pedestrian incident.
Nevertheless, the sector continues to grow, with Waymo recently announcing an expansion of its fleet with the Hyundai Ioniq 5 after successful road tests.
Uber also plans to enhance its autonomous vehicle offerings to improve its ridesharing and delivery services.
In August, it disclosed a multi-year partnership with a driverless car developer to bolster its autonomous ambitions.
Moreover, Chinese tech firm Baidu is reportedly aiming to extend its robotaxi operations beyond China, where they already function in multiple cities.
