Tesla CEO Elon Musk announced on social media that the company will reveal its robotaxi product on August 8. This project has been talked about for years and could be a significant new business opportunity for Tesla, especially as investors grow concerned about the company’s slowing growth. After Musk’s tweet, Tesla’s shares rose over 3% in extended trading. The announcement came shortly after reports that plans for Tesla’s low-cost car model had been scrapped, with Musk accusing Reuters of spreading false information.
Elon Musk initially mentioned Tesla achieving “full autonomy” in its cars within three years during a shareholder meeting in 2015. He later claimed that Tesla would be able to send one of its cars on a cross-country drive without human intervention by the end of the following year. However, Tesla has not yet delivered a robotaxi, autonomous vehicle, or technology that can turn its cars into “level 3” automated vehicles. Despite this, Tesla offers advanced driver assistance systems including Autopilot and the premium Full Self-Driving option for an additional cost.
In a recent push for end-of-quarter sales, Musk mandated that all Tesla sales and service staff install and demonstrate the Full Self-Driving option for customers before handing over the keys. Musk emphasized that few people realize how well the system works under supervision, although a human driver must still be present at the wheel. Other companies in the autonomous vehicle sector, such as Alphabet’s Waymo and Didi in China, operate commercial driverless ride-hailing services. However, some companies have faced challenges in this competitive market, such as Apple’s recent shutdown of its self-driving unit and GM’s Cruise service which has faced regulatory scrutiny after an accident.
It is important to note that Tesla’s “unveil” dates do not necessarily indicate a near-future commercial release of a product. For example, Tesla unveiled its electric heavy-duty truck, the Semi, in 2017 but did not start deliveries until 2022. The company still produces and sells very few Semis to this day. This history suggests that although Tesla will reveal its robotaxi product in August, it may take some time before it is fully available to customers. Overall, the announcement of the robotaxi product represents an important development for Tesla and its future business prospects in the autonomous vehicle market.
