Tesla is set to reveal a robotaxi tonight, an event taking place at Warner Brothers Studio in Burbank, California, featuring CEO Elon Musk who may be joined by a humanoid robot. Titled “We, Robot,” the presentation will start at 7 p.m. Pacific Time and will be streamed live, as indicated by the company on X, the social media platform owned by Musk.
Here are five key points to know about Tesla’s ambitious plans regarding autonomous driving.
First, Musk emphasizes that robotaxis are crucial for Tesla’s future profitability. While Tesla currently generates revenue from electric vehicle sales, which have strong profit margins, Musk is focused on tapping into the software industry’s larger profit potential. The company offers a software package known as “Full Self Driving (Supervised)” that reportedly autonomously maneuvers Tesla cars on various roads but still requires human intervention at times. Musk believes once full autonomy is achieved, demand will soar, allowing personal vehicles to earn income similar to rideshare services.
Second, Musk has repeatedly projected timelines for the introduction of robotaxis, consistently missing his ambitious targets. He previously claimed robotaxis would be operational in 2019, 2020, 2021, and 2022, but progress has lagged. Although Tesla’s software can occasionally drive autonomously, it lacks reliability for fully unassisted operation. Competitors like Waymo and GM’s Cruise have already experimented with driverless taxis, although profitability remains an issue for them as well.
Third, Tesla’s strategy for achieving autonomy is notably different from that of other companies. Musk relies on a system that predominantly utilizes cameras without additional sensors, contrasting with competitors who employ a wider range of technologies. Musk’s method, which revolves around “end-to-end learning,” has been met with skepticism from rivals who argue that it could be unsafe without proper regulations and oversight.
Fourth, regulatory considerations pose a significant challenge, as the U.S. currently lacks federal guidelines for autonomous vehicles. The absence of a cohesive regulatory framework affects how companies create and test their technology. If regulators are not convinced of the safety of a robotaxi fleet, it may hinder its deployment.
Lastly, the event may also showcase Tesla’s humanoid robot, Optimus, which is designed to perform repetitive tasks autonomously. Musk has suggested that the long-term value of Optimus could surpass all other Tesla products combined, hinting at the robot’s potential versatility and utility.
Attendees, including analysts and fans, will be keen to witness if Musk can deliver a demonstration of a fully autonomous vehicle that meets his bold claims and expectations following years of hype.