Tesla CEO Elon Musk unveils self-driving ‘Cybercab’

Elon Musk showcased a robotaxi with two gull-wing doors and no steering wheel or pedals at a splashy event on Thursday, and added a robovan to the roster as Tesla’s goal shifts from low-priced mass-market automaker to robotics manufacturer.

The Tesla CEO reached the stage in a “Cybercab”, which he said would go into production in 2026 and be priced less than $30,000 (R525,000). He said operation would cost 20c (R3.50) a mile over time and charging would be inductive, requiring no plugs.

He said the cars relied on artificial intelligence (AI) and cameras and did not need other hardware that robotaxi rivals used, an approach investors and analysts have flagged as challenging from a technical and regulatory stand point.

“The autonomous future is here,” Musk said.

“We have 50 fully autonomous cars here tonight. You’ll see model Ys and the Cybercab. All driverless.”

Musk also showcased a larger, self-driving vehicle, called Robovan, capable of carrying up to 20 people, and showed off Tesla’s Optimus humanoid robot.

His plan is to operate a fleet of self-driving Tesla taxis passengers can hail through an app. Individual Tesla owners will be able to make money on the app by listing their vehicles as robotaxis.

Thursday’s event at the Warner Bros studio near Los Angeles, California, was titled “We, Robot”, an apparent nod to the I, Robot science-fiction short stories by American writer Isaac Asimov, but also echoes Musk’s insistence that Tesla “should be [referred to] as an AI robotics company” rather than an carmaker.

Those attending included investors, stock analysts and Tesla fans.

Investors expecting concrete details on how quickly Tesla can ramp up robotaxi production, secure regulatory approval and implement a strong business plan to leapfrog rivals such as Alphabet’s Waymo were left disappointed.

“Everything looks cool, but not much in terms of timelines. I’m a shareholder and pretty disappointed. I think the market wanted more definitive time lines,” said Dennis Dick, equity trader at Triple D Trading.

“I don’t think he said much about anything. He didn’t give much info.”

Musk said he tended to be optimistic with time frames.

In 2019 Musk he was “very confident” the company would have operational robotaxis by the next year. After missed promises, Musk in 2024 diverted his focus to developing the vehicles after scrapping plans to build a smaller, cheaper car widely seen as essential to countering slowing electric vehicle (EV) demand.

Tesla is at risk of posting its first-ever decline in deliveries in 2024 as buying incentives have failed to attract enough customers to its ageing EV line-up. Steep price cuts meant to offset high interest rates have also squeezed profit margins.

Complicated technology and tight regulation have led to billions of dollars in loss for other companies attempting to crack the robotaxi market, forcing some to shut shop.

Some are continuing to push, including General Motors’ Cruise, Amazon’s Zoox and Chinese firms such as WeRide.

Unlike expensive hardware such as lidar that others use, Musk is relying only on cameras and AI to run full self-driving (FSD) to keep costs down. But FSD, which requires constant driver attention, has faced regulatory and legal scrutiny with at least two fatal accidents involving the technology.

“We do expect to start fully autonomous unsupervised FSD in Texas and California next year. That’s with the Model 3 and Model Y,” Musk said.

He did not say whether the robotaxis would use any new technology or depend on FSD. 

Reuters