Tesla recently showcased its highly anticipated robotaxi, the Cybercab, during an event held at a Warner Bros. studio in Hollywood. However, fans of the electric vehicle company will have to wait until at least 2026 for the vehicle’s market launch.
CEO Elon Musk introduced the “Cybercab” during the event, highlighting that the AI-driven vehicle will be designed without steering wheels or pedals. He expressed optimism regarding advancements in the technology that would enable vehicles to operate autonomously without human input.
Despite the reveal, Tesla’s stock prices dropped by 9% when trading opened on Friday, indicating a lukewarm response from investors. Although the shares recovered slightly, they were still down approximately 8% by early afternoon.
Tesla has been selling its “Full Self-Driving” software for nine years, yet its reliability remains a concern. At the event, Musk suggested that the cost of Cybercabs would be below $30,000 and set an optimistic timeline for their availability, stating they would be ready before 2027. He also mentioned a future where passengers can sleep and awaken at their destinations, indicating a shift from supervised to unsupervised driving.
Analysts remain skeptical about these projections, with some pointing out the significant technological hurdles to achieving full autonomy. Regulatory approvals and public acceptance are essential factors that must be addressed before robotaxis can become commonplace.
The company also aims to introduce Full Self-Driving capabilities to its Model 3 and Model Y vehicles in Texas and California within the next year. Tesla displayed around 20 Cybercabs during the event, allowing attendees to experience rides within the studio grounds.
Daniel Ives from Wedbush Securities expressed a positive outlook for the Cybercab, highlighting its potential to generate substantial revenue in the future. However, he acknowledged ongoing discussions around regulatory approval and other challenges facing the launch.
In addition to the Cybercab, Musk unveiled a self-driving minibus designed to transport up to 20 passengers and showcased Tesla’s Optimus humanoid robots, which are programmed for various tasks.
The debut of the Cybercab comes amid challenges for Tesla’s traditional electric vehicle sales, which are not expected to be refreshed until late next year at the earliest. Additionally, some analysts noted that Musk’s political endorsements could be alienating certain consumer demographics.
Musk has promoted the idea that a fleet of robotaxis could allow Tesla owners to earn money by renting out their vehicles. However, past predictions regarding the rollout of autonomous driving have proven overly ambitious.
This announcement coincides with ongoing investigations by U.S. safety regulators into the Full Self-Driving system, particularly regarding its ability to keep drivers attentive. The National Highway Traffic Safety Administration had previously compelled Tesla to address issues with the Full Self-Driving system that facilitated traffic violations. Notably, a recent fatal incident involving a Tesla in Washington state has brought further scrutiny to the technology.