Robot-Taxi: Tesla's New Horizon

Elon Musk aims to sketch a new future for the struggling American automaker with the Cybercab.

Robot-Taxi: Tesla's New Horizon

Tesla “should be considered an artificial intelligence [AI] robotics company,” not just a car manufacturer. In the future, its development will depend on the rise of the autonomous car. By presenting its robot taxi called “Cybercab” at a grand show in Hollywood on Thursday, October 10, Elon Musk sought to outline Tesla’s long-term prospects amid its growth struggles.

The tycoon, appearing on the Warner Bros. Studios stage in Los Angeles behind the wheel of one of these electric vehicles lacking a steering wheel and pedals – a kind of two-seater coupe with a very stripped-down design, no rear windows, partially inspired by the Cybertruck – claimed production would start in 2026. The Cybercab is expected to be priced under $30,000 (around €27,430) and its operating cost is expected to be no more than $0.20 per kilometer. Tesla’s CEO stated that recharging would be possible through induction.

Fleets of self-driving Cybercabs will be operated through an app. Individuals owning one of these robot taxis will be able to use it for their own purposes, but also make it available to the public and be compensated. In addition to an autonomous version of the Model Y, the world’s best-selling Tesla, Elon Musk unveiled the Robovan, a self-driving minibus that resembles a rectangular prism and can transport – without a driver – twenty people for urban journeys.

Technological Hurdles

Described as an event “destined to be etched in history,” this Hollywood show is the culmination of promises made by Elon Musk nearly a decade ago. In 2016, he asserted that robot taxis would be on the road within two years and promised that a million of these vehicles would be in operation by 2020. Since then, other players have emerged to occupy the urban autonomous transport space.

Waymo (Google) operates 700 vehicles, carrying out nearly 100,000 paid trips per week in San Francisco, Las Vegas, Phoenix, and Austin, the Texan city where Tesla has its headquarters. Cruise (General Motors) is, for its part, established in four major American metropolitan areas. In China, operators have also launched driverless taxi services in several major cities.

The vision presented by Elon Musk, who also mentioned the latest refinements to Tesla’s “personal robot” Optimus, paints a picture of a distant future. According to UBS analysts, “the large-scale deployment of Tesla’s robot taxi is unlikely in the coming years.” Beyond the technological hurdles that need to be overcome and the experience that needs to be accumulated by operating autonomous vehicles, the manufacturer must bridge the gap in the regulatory domain. Launching an experimental autonomous vehicle service requires lengthy and complex procedures with the authorities.