The long-awaited Robotaxi
has left the industry “disappointed” due to poor planning
Is this another empty promise from CEO Musk?
On October 10, Tesla CEO Elon Musk exited a driverless autonomous vehicle and said the future vehicle would be “like sitting in a comfortable little lounge.” On that day, Tesla held an event called “We, Robot” at Warner Bros. Discovery Studios in Los Angeles, US.
At the event, Tesla unveiled its much-anticipated Cybercab, its first fully autonomous robotaxi. The event’s name was inspired by Isaac Asimov’s classic novel I, Robot, hinting at a futuristic, AI-driven world. The Cybercab—a two-seater vehicle with a sharp, angular design—stunned attendees with its unique “butterfly doors” that open upward like wings.
Affordable, But at What Cost?
The Cybercab’s key selling point is its lack of traditional control mechanisms. There’s no steering wheel, no brake pedal, and not even a rear window. This minimalist design is due to the fact that it is a fully autonomous vehicle requiring no human intervention for driving. To further its futuristic appeal, the Cybercab offers wireless charging, eliminating the need for plugging in.
Elon Musk promised that Tesla would mass-produce the Cybercab before 2027, with a starting price of under $30,000. He also claimed that operating costs would be incredibly low, at $0.20 per mile, a fraction of the $1 per mile typically charged by city buses.
Skepticism from Experts: “Toothless Taxi”
Despite Musk’s bold promises, the reaction from industry experts has been anything but enthusiastic. U.S. investment bank Jefferies called the Cybercab a “toothless taxi,” and Wall Street is increasingly skeptical of Musk’s ambitious claims. Notably, this is not the first time Musk has set lofty goals—he famously predicted in 2019 that more than 1 million robotaxis would be on the road by 2020, a target never met.
Following the announcement, Tesla’s stock dropped by more than 8%, while shares of ride-hailing companies Uber and Lyft surged by about 10%. Media outlets like CNBC reported widespread disappointment over the lack of concrete details regarding the Cybercab’s launch plans and regulatory approval.
Can Confidence Alone Sustain Tesla?
Experts pointed out that Tesla’s market value is over $760 billion, but its actual earnings growth rate is stagnant. Bernstein’s Tony Sacconaghi said that about $600 billion of Tesla’s valuation depends on unproven businesses such as full self-driving and robotaxis. The value of the core automobile business is only about $200 billion.
Tesla’s operating profit margins have plummeted from 14.6% two years ago to 6.3% due to falling demand and increasing competition in the EV market. After the robotaxi event, there was a huge reaction, with the stock price dropping by nearly $60 billion. Industry experts are currently assessing TeslaTesla’sation as quite bad.
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