Tesla CEO Elon Musk unveiled the long-awaited Cybercab robotaxi at an event held at Warner Bros Studios in Burbank, California. The event, titled “We, Robot,” showcased the futuristic vehicle, which features two wing-like doors and operates without pedals or a steering wheel. The Cybercab dropped off Musk in front of an eager audience awaiting details about Tesla’s next major project, which Musk views as a key step in the company’s future.
During the event, Musk emphasized his belief that fully autonomous vehicles will soon surpass human-operated cars in safety, adding that the Cybercab could provide a source of income for owners by allowing them to rent it out as a rideshare service. However, not everyone shares his optimism. After Musk’s presentation, Tesla’s stock took a hit, dropping more than 8% on Friday morning as markets opened in the US, with shares trading around $219. Meanwhile, competitors Uber and Lyft, both of which are working on their own autonomous vehicle technology, saw their stock prices increase by up to 10%.
Musk’s vision for the Cybercab includes a production timeline starting “before 2027,” although the Tesla CEO admitted that he often sets ambitious deadlines. “I tend to be optimistic with time frames,” Musk said humorously during the presentation. He also revealed that the vehicle would cost less than $30,000, a claim that some analysts doubt.
Paul Miller of Forrester Research voiced skepticism about Musk’s price target. “It will be extremely difficult for Tesla to offer a new vehicle at that price within that timescale,” Miller said, noting that such a low price point could be unrealistic without external subsidies or Tesla taking a loss on each vehicle. Miller added, “It doesn’t seem plausible to launch at anything close to that price this decade.”
Musk also announced his expectation that fully autonomous, unsupervised driving technology would become available in Tesla’s Model 3 and Model Y in Texas and California by next year, pending regulatory approval. Yet, that approval is by no means certain. According to Samitha Samaranayake, an associate professor of engineering at Cornell University, “Safety concerns are big,” especially when it comes to a “big chunk of metal driving on roads at high speeds.”
Tesla’s approach to autonomous driving, which relies on camera-based technology instead of the radar and Lidar sensors used by many competitors, continues to raise eyebrows. Tesla gathers massive amounts of raw data from its millions of vehicles to train its AI systems, but the broader research community remains unconvinced. “We’re not sold on whether Tesla’s approach can provide the safety guarantees we want,” Samaranayake added.
The road to developing the Cybercab has not been without its setbacks. Originally slated for release in August, the project was delayed due to design changes Musk deemed necessary. On X (formerly Twitter), Musk attributed the delay to adjustments that he believed were crucial for the vehicle’s success. Meanwhile, Tesla’s competitors have already made significant headway in the robotaxi space, with other autonomous vehicles currently operating on select U.S. roads.
Tesla’s unveiling event was filled with spectacle, including a live demonstration of Tesla’s humanoid robots, which danced and served drinks to attendees. The company also revealed a new concept, the “Robovan,” a sleek electric shuttle designed to carry up to 20 passengers. Musk, visibly excited, introduced the Robovan with dramatic flair, saying, “Can you imagine going down the streets and seeing this coming toward you? That would be sick.”
Dan Ives, a managing director at Wedbush Securities who attended the event, sees potential in the Robovan. “It could be a mode of transportation over the coming years that Tesla leverages,” Ives remarked. While the Robovan may represent another bold vision for the future of transportation, its implementation remains speculative for now.
The showcase left attendees and analysts divided. Jessica Caldwell, head of insights at Edmunds, praised Musk for painting a compelling vision of the future of transportation. “Musk did a fantastic job of showing an ideal future that promises to free up our time and increase safety,” Caldwell said. However, she expressed concerns about how realistic Musk’s vision is. “Many questions remain about how this will be achieved from a practical standpoint,” Caldwell added.
While Tesla continues to push the boundaries of innovation, the broader robotaxi market remains fraught with challenges. The deployment of driverless cars has encountered significant hurdles, such as a recent incident in San Francisco where a pedestrian was struck by a robotaxi operated by Cruise, a subsidiary of General Motors. This prompted authorities to suspend Cruise’s robotaxi services in the city, highlighting the potential risks and regulatory roadblocks that autonomous vehicles face.
Despite these setbacks, the robotaxi industry shows no signs of slowing down. Alphabet-owned Waymo recently announced plans to expand its fleet by adding the Hyundai Ioniq 5, with on-road testing underway. Uber is also making strides, forging a multi-year partnership with Cruise to incorporate more autonomous vehicles into its ridesharing and delivery operations. Chinese tech giant Baidu has its own robotaxi division, Apollo Go, which operates in several cities in China and may soon expand internationally.
Though the journey to fully autonomous vehicles is far from complete, Tesla’s unveiling of the Cybercab and Robovan represents an ambitious step forward. Whether Musk can deliver on his promises remains to be seen, but one thing is certain: the future of transportation is evolving, and Tesla is determined to lead the charge.
