This October, Tesla announced a robotaxi service is coming. At the company’s We, Robot event, attendees got to experience Tesla’s new Optimus robots on top of upcoming electric vehicles (EVs). The latest venture maximizes its autonomous driving capabilities with ride-hailing services. The Tesla Cybercab is coming, but will this venture from Elon Musk pay off?
The Cybercab aims to function like Uber or Lyft, using a designated app to call rides at a whim. However, the cars will have Full Self-Driving technology to navigate different roads.
The idea is similar to Waymo or General Motors’ (GM) Cruise. These are driverless taxis that can be assisted remotely if the vehicles get. However, both services have software problems. GM has also poured billions into the autonomous taxi services.
The Cybercabs would be a major addition to the Tesla lineup. However, financial analysts wonder if this is the most profitable venture. It’s ambitious, which is not uncommon for Musk, but there are questions about whether people will use an autonomous rideshare.
Tesla would also need to ensure the cabs are safe to ride. Waymo tested its technology for years before allowing passengers inside. The United States government will also have to regulate what Tesla and Waymo do with autonomous driving. It will need to certify safety standards for these companies and also ensure there is a possibility for human intervention.
Photo Courtesy Tesla
Tesla’s stock dipped on the day of the Cybercab announcement. In the past, Musk hasn’t followed his timetables very well, whether that’s self-inflicted or out of his control. The Cybertruck and Model X were launched publicly way later than originally planned. He even admitted his predictions have been “overly optimistic” in past business decisions.
Tesla has had a tough few months. Profits were down by 55% in the first quarter of 2024. However, the company says it’s still on track to meet its future goals with help from artificial intelligence and autonomous vehicles.
Questions also remain about whether Tesla will follow through with the $25,000 EV they promised in 2020. The current cheapest car is the Model 3, starting at around $38,000.
Photo Courtesy Waymo
Robotaxi services are gaining popularity. Waymo drove 1.2 million miles last year but suffered 14 disengagements and needed manual control.
The company says it has established a foothold in cities like San Francisco and Phoenix, with more than 100,000 rides served weekly.
It will be interesting to see if Tesla can compete with other autonomous ride-hailing companies.
NPR reported that J.D. Power surveyed robotaxi riders, and many liked it, but they also didn’t find them practical. They’re also pricey compared to traditional taxi services. If Tesla can answer some of the questions about the Cybercab’s business model and if it can be properly regulated, the venture may pay off.
