Elon Musk has made significant sacrifices to accelerate the development of Tesla’s robotaxis, including shelving plans for a more affordable car, cutting teams on other projects, and downplaying Tesla’s recent sales slowdown.
On Thursday (10), Musk is set to reveal Tesla’s autonomous taxi prototypes, which he promises will herald a new era in transportation—one where driverless Teslas ferry passengers while their owners are asleep or at work.
Musk has long made optimistic predictions about autonomous Teslas, and now investors are keen to see whether Tesla can surpass the likes of Waymo, which already offers driverless rides. “If they just show something that doesn’t actually demonstrate the technology, a prototype of a vehicle that doesn’t move, that’s going to go over like a lead balloon,” said Gene Munster, managing partner at Deepwater Asset Management.
The future will be streamed live
10/10, 7pm PT https://t.co/YJEjZIYoTA
— Tesla (@Tesla) October 9, 2024
The event, dubbed “We, Robot,” is scheduled for 7 p.m. California time at Warner Bros. Discovery’s movie studio near Los Angeles. Musk is expected to showcase Tesla’s Cybercab, a purpose-built robotaxi that won’t require human drivers and uses cameras and computing power for navigation, unlike competitors like General Motors’ Cruise and Waymo, which rely on more expensive Lidar technology.
Though Tesla has kept the design under wraps, insiders say the robotaxi may have two front seats and doors that open upwards. Musk may also unveil other vehicles, including a robovan that can carry large groups or serve as an autonomous delivery vehicle.
For Tesla to make robotaxis a reality, significant advancements in AI are required, especially for its Full Self-Driving (FSD) features, which currently require constant supervision. Additionally, regulatory approvals will be crucial, and while competitors are ahead in this area, Tesla has yet to apply for the necessary permits to offer commercial robotaxi services in California.
Musk has previously stated that Tesla’s robotaxi service would function like a combination of Uber and Airbnb, allowing Tesla owners to lend their cars to the fleet when not in use. Musk is also likely to provide updates on Tesla’s humanoid robot, Optimus, as well as touch on the future of FSD for its Semi truck.
As Tesla faces its first-ever annual sales decline, Musk will need to demonstrate that the robotaxi, not cheaper cars, is the key to the company’s future.
