Key Points
- Tesla unveiled its long-awaited robotaxi concept, aiming to lead the autonomous taxi market.
- Investors are cautious about the cost and timing of robotaxi production amid competitive challenges.
- Tesla’s Full Self-Driving (FSD) software faces scrutiny over safety and regulation.
- The event highlighted Musk’s vision of Tesla as an AI robotics company, not just an EV maker.
Tesla (TSLA.O) hosted its highly anticipated “We, Robot” event on Thursday, revealing its long-awaited robotaxi concept and updating investors on artificial intelligence projects that CEO Elon Musk believes will drive the company’s future growth. The event, held at Warner Bros. studios near Los Angeles, featured an enthusiastic atmosphere with a futuristic theme. Social media posts from attendees showcased the festive ambiance, which included crowds, lights, and a grand stage. Musk responded to the excitement on platform X, highlighting the “futuristic world” they had constructed for the event.
Musk’s grand vision centers on operating a fleet of self-driving Tesla taxis, branded as “Cybercabs,” which passengers can hail via a dedicated app. In addition, individual Tesla owners can list their vehicles as robotaxis, potentially generating extra income. This concept builds on Tesla’s broader ambition to be seen as an AI robotics company rather than just an electric vehicle (EV) maker.
The event attracted a mix of investors, stock analysts, and Tesla enthusiasts, including high-profile figures such as Stellantis chairperson John Elkann and Musk’s brother, Kimbal. However, while excitement for the event ran high, analysts and investors have tempered expectations, recognizing the significant challenges posed by the technology and the competitive landscape.
A key focus for attendees was how quickly Tesla could ramp up production of its robotaxi fleet and the cost implications of doing so. Investors are also keen to understand how profitable this venture could be, especially as Tesla faces rising competition in the autonomous vehicle space from companies like Alphabet’s Waymo and General Motors’ Cruise. The question of profitability is pressing, as many companies attempting to break into the robotaxi market have faced steep losses and regulatory challenges.
Tesla’s Full Self-Driving (FSD) technology, which Musk plans to use as the foundation for its robotaxi fleet, is also under scrutiny. While competitors often rely on expensive hardware like lidar, Tesla uses only cameras and artificial intelligence, aiming to keep costs low. However, FSD has faced legal and regulatory challenges, with reports of accidents and fatalities involving the technology.
Musk also hinted at possible updates on Tesla’s humanoid robot, Optimus, and cheaper versions of its current EV models. These announcements come at a critical time for Tesla, which risks its first-ever annual decline in deliveries amid slowing demand for its aging EV lineup and squeezed profit margins from steep price cuts.
