Tesla unveils $30k Cybercab Robotaxi, targets 2026 production
Tesla revealed the Cybercab, a futuristic robotaxi expected to cost under $30,000, with production set for 2026. The two-seater vehicle features butterfly doors and lacks a steering wheel or pedals, emphasizing Tesla's push toward fully autonomous driving. Despite the excitement, questions remain about regulatory hurdles and the timeline for deployment. Tesla also showcased its Robovan concept, designed to carry up to 20 passengers, and updated its humanoid robot, Optimus.
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By Dana Hull, Ed Ludlow and Kara Carlson
Elon Musk unveiled prototypes of a long-awaited Tesla Inc. robotaxi called Cybercab, saying production may start in 2026 and that the vehicle could cost less than $30,000.
The chief executive officer hitched a ride in one of the two-door sedans on his way to the stage at the carmaker's event late Thursday in Burbank, California. Musk also showcased a futuristic-looking Robovan concept that he said could transport as many as 20 people, plus updated versions of Tesla's humanoid robot called Optimus.
The event didn't address how Tesla will make the leap from selling advanced driver-assistance features to fully autonomous vehicles. Musk's presentation lacked technical details and glossed over topics including regulation or whether the company will own and operate its own fleet of Cybercabs.
Tesla has a track record of blowing past timelines Musk has offered for all manner of future products, and has had a particularly difficult time following through on his self-driving predictions. The CEO told investors in 2019 that Tesla would have more than 1 million robotaxis on the road by the following year. The company hasn't deployed a single autonomous vehicle in the years since.
"The only specific was the $30,000 for a Cybercab," said Nancy Tengler, the chief executive officer of Laffer Tengler Investments and a Tesla investor who attended the event. "The concepts were all grand. Is the idea super cool? Absolutely."
Tesla has for years been selling a suite of features marketed as Full Self-Driving, or FSD, that require constant supervision and don't make its vehicles autonomous.
Musk said Thursday the company expects to be able to allow Model 3 and Model Y owners in Texas and California to no longer need to supervise the system next year.
Design and Timeline
The robotaxi event itself was postponed by two months after Musk ordered changes to the prototype's design, Bloomberg first reported in July. The Cybercab seats two passengers, features doors that open upward like butterfly wings, and lacks a steering wheel or pedals.
"They nailed the form factor," said Gene Munster, managing partner of growth-investment firm Deepwater Asset Management, who went for a ride in one of the prototypes. "But the investor reaction is probably going to be muted because it's still a long ways away, in terms of the time frame."
Musk told the crowd gathered at a Warner Bros. Discovery Inc. movie studio lot that consumers will be able to buy the Cybercab, then offered a hedged answer when someone in the crowd asked when it will be available.
"Probably, well I tend to be little optimistic on time frames, but in 2026," Musk said. "Before 2027, let me put it that way."
Trump's Skepticism
US presidential candidate Donald Trump provided fresh indication of the potential for Tesla's robotaxi to run into regulatory snags in the lead up to Tesla's party.
Speaking at a Detroit Economic Club event, the Republican nominee questioned whether anybody likes autonomous vehicles and said they were "concerning" to him. It was unclear from his remarks whether he was only singling out cars from China.
"The autonomous vehicles, we're going to stop from operating on American roads, remember this," Trump said. Musk endorsed Trump for president in July and has been spending millions of dollars supporting his candidacy.
Missing Models
Analysts said ahead of the event that they hoped Tesla would share additional information about the more affordable models Musk has teased for the first half of next year.
The CEO didn't offer any such updates, casting further doubt on the company's vehicle sales prospects. The carmaker needs to deliver a record number of cars and trucks in the coming months to avoid its first ever annual decline.
"We were disappointed by the lack of detail regarding Tesla's near-term product roadmap," Garrett Nelson, a CFRA Research analyst, said in a note. "We think the event did little to change an opaque intermediate-term earnings outlook."
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© 2024 Bloomberg L.P.