Key Points:
- Tesla CEO Elon Musk announces August 8 as the date for unveiling the company’s robotaxi product, and Tesla shares respond positively in extended trading.
- The announcement follows reports about Tesla scrapping plans for a low-cost car model, which Musk refuted.
- Previous promises of full autonomy have yet to materialize, but Tesla offers advanced driver assistance systems.
- Alphabet’s Waymo leads in autonomous ride-hailing services, while Apple and GM face setbacks in their self-driving endeavors.
Tesla CEO Elon Musk took to social media X, formerly Twitter, to announce that the company will unveil its long-awaited robotaxi product on August 8. The revelation comes amid growing anticipation for Tesla’s entry into the autonomous vehicle market, potentially opening up a significant new revenue stream for the electric carmaker.
Musk’s announcement prompted a positive market response, with Tesla shares surging over 3% in extended trading following his tweet. The reveal date was shared after reports surfaced that plans for Tesla’s anticipated low-cost car model had been abandoned, leading Musk to accuse Reuters of misinformation.
Despite Musk’s ambitious promises in the past regarding Tesla’s progress towards achieving full autonomy, the company has yet to deliver a functioning robotaxi or achieve “level 3” automated driving capabilities. However, Tesla does offer advanced driver assistance systems (ADAS), including the standard Autopilot option and the premium Full Self-Driving (FSD) option, which customers can subscribe to for $199 per month or purchase for $12,000 upfront in the U.S.
Recently, Musk mandated that all Tesla sales and service staff install and demonstrate FSD for customers, emphasizing the system’s capabilities to boost end-of-quarter sales. However, it’s worth noting that despite its name, Tesla’s FSD option still requires a human driver, ready to intervene if necessary.
In the competitive landscape of autonomous vehicles, Alphabet’s Waymo stands out as a frontrunner, operating commercial driverless ride-hailing services in several U.S. cities. Meanwhile, Apple recently shuttered its self-driving unit, and GM’s Cruise service faced regulatory challenges following an accident, leading to the grounding of its robotaxi fleet.
It’s important to temper expectations regarding Tesla’s product reveals, as past unveilings, such as the Tesla Semi truck in 2017, did not translate to immediate commercial releases. Despite the buzz surrounding Tesla’s robotaxi announcement, it may still be some time before the product becomes available to consumers.
