Musk, Tesla unveil long-awaited "Cybercab" robotaxi
Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, though fans of the electric vehicle maker will have to wait until at least 2026 before it's available.
CEO Elon Musk pulled up to a stage at the Warner Bros. studio lot in one of the company's "Cybercabs," telling the crowd the sleek, AI-powered vehicles don't have steering wheels or pedals. He also expressed confidence in the progress the company has made on autonomous driving technology that makes it possible for vehicles to drive without human intervention.
Investors, however, don't appear all that impressed. Shares of Tesla Inc. tumbled 9% at the opening bell Friday, a sign that the event was not the success it was built up to be. Though recovering slightly, Tesla shares remained down roughly 8% as of 1:30 p.m. Eastern time Friday.
Tesla began selling the software, which is called "Full Self-Driving," nine years ago. But there are doubts about its reliability.
Cybercab release date projections
Tesla expects the Cybercabs to cost under $30,000, Musk said at the event. He estimated that the vehicles would become available in 2026, then added "before 2027."
"We'll move from supervised Full Self-Driving to unsupervised Full Self-Driving, where you can fall asleep and wake up at your destination," Musk said. "It's going to be a glorious future."
To those anxious to see Cybercabs become a reality, another two years may sound like a long time to wait, but the timeline struck some analysts as improbable, given the current state of FSD software.
"Making the leap from where we are today to full autonomy (particularly through unsupervised vehicles with zero steering or pedals) is so gargantuan, technology-wise, that it feels overly ambitious in such a short period of time," Jessica Caldwell, head of insights at Edmunds, said in a note.
"Regulatory approval will be required along with major buy-in from the public in order for vehicles like the robotaxi to manifest prior to 2027 as part of the everyday consumer experience, because public safety is a major question," she added.
"If they're going to eventually get to robotaxis, they first need to have success with the unsupervised FSD at the current lineup," said Seth Goldstein, equity strategist at Morningstar Research. "[Tesla's robotaxi] event showed that they're ready to take that step forward."
The company also expects to make the Full Self-Driving technology available on its popular Model 3 and Model Y vehicles in Texas and California next year.
Tesla had 20 or so Cybercabs on hand and offered event attendees the opportunity to take rides inside the movie studio lot — not on Los Angeles' roads.
"Seeing Cybercab up close is very impressive and price points on this vehicle will create a fleet segment that could be a $10 billion annual business at scale over the coming years for Tesla," Daniel Ives, managing director and senior equity analyst for Wedbush Securities in a research note on the robotaxi event.
Ives said he was "very positive" about the future of the Cybercab. "Regulatory approval, insurance, and the specifics of this Cybercab launch will remain a debate on the Street and represent some timing challenges that Tesla will need to navigate into this next step of growth/future of transportation," he added.
From EVs to "We, Robot"
At the presentation, which was dubbed "We, Robot" and was streamed live on Tesla's website and X, Musk also revealed a sleek minibus-looking vehicle that, like the Cybercab, would be self-driving and can carry up to 20 passengers.
The company also trotted out several of its black and white Optimus humanoid robots, which walked a few feet from the attendees before showing off dance moves in a futuristic-looking gazebo.
Musk estimated that the robots would cost between $28,000-$30,000 and would be able to babysit, mow lawns and fetch groceries, among other tasks.
"Whatever you can think of, it will do," he said.
The unveiling of the Cybercab comes as Musk tries to persuade investors that his company is more about artificial intelligence and robotics as it struggles to sell its core products, an aging lineup of electric vehicles.
Tesla's model lineup is struggling and isn't likely to be refreshed until late next year at the earliest, TD Cowen analyst Jeff Osborne wrote in a research note last week.
Osborne also noted that, in TD Cowen's view, the "politicization of Elon" is tarnishing the Tesla brand among Democratic buyers in the U.S.
Musk has endorsed former president and Republican presidential candidate Donald Trump and has pushed many conservative causes. Last weekend, he joined Trump at a Pennsylvania rally.
Musk has been saying for more than five years that a fleet of robotaxis is near, enabling Tesla owners to make money by having their cars carry passengers while they're not being used by their owners.
But he's acknowledged that past predictions for the use of autonomous driving proved too optimistic. In 2019, he promised the fleet of autonomous vehicles by the end of 2020.
The announcement comes as U.S. safety regulators are investigating Full Self Driving and Autopilot based on evidence that it has a weak system for making sure human drivers pay attention.
In addition, the U.S. National Highway Traffic Safety Administration forced Tesla to recall Full Self-Driving in February because it enabled speeding and violated other traffic laws, especially near intersections. Tesla was to fix the problems with an online software update.
Last April in Snohomish County, Washington, near Seattle, a Tesla using Full Self-Driving hit and killed a motorcyclist, authorities said. The Tesla driver told authorities he was using the system while looking at his phone when the car rear-ended the motorcyclist. The motorcyclist was pronounced dead at the scene, authorities said.
NHTSA says it's evaluating information on the fatal crash from Tesla and law enforcement officials.
The Justice Department also has sought information from Tesla about Full Self-Driving and Autopilot, as well as other items.
