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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.
Said Dennis Dick, an equity trader at Triple D Trading: “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. I don’t think he said much about anything. He didn’t give much info.”
Musk told the crowd that consumers would be able to buy the Cybercab but then he offered a hedged answer when someone in the crowd asked when it would be available.
“Probably, well I tend to be a little optimistic on timeframes, but in 2026,” Musk said. “Before 2027, let me put it that way.”
Missed promises
Musk in 2019 said he was “very confident” the company would have operational robotaxis by the next year. After missed promises, Musk this year diverted his focus to developing the vehicles after scrapping plans to build a smaller, cheaper car widely seen as essential to countering slowing EV demand.
Tesla is at risk of posting its first-ever decline in deliveries this year 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.
Tesla has added a robovan to the roster.Credit: Tesla
Complicated technology and tight regulation have led to billions of dollars in losses for other companies attempting to crack the robotaxi market, forcing some to shut shop.
Some are still pushing, including General Motors’ Cruise, Amazon’s Zoox and Chinese firms such as WeRide.
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Unlike expensive hardware such as lidar that others use, Musk is relying only on cameras and AI to run its full self-driving software to keep costs down. But FSD, which requires constant driver attention, has faced regulatory and legal scrutiny. There have been at least two fatal accidents involving the technology.
“We do expect to start fully autonomous unsupervised FSD in Texas and California next year,“ Musk said. “That’s with the Model 3 and Model Y.”
He did not say whether the robotaxis would use any new technology or if they would depend on FSD.