Elon Musk, CEO of Tesla, has introduced a new electric vehicle designed specifically for self-driving, marking what could be a significant step forward after several delays and unmet promises. The vehicle, known as the “robotaxi,” is built without a steering wheel or pedals, which implies it will require regulatory approval before mass production can begin. The design features futuristic elements, including upward-opening butterfly doors and a small cabin meant for two passengers. Uniquely, the vehicle charges wirelessly through inductive technology, eliminating the need for a plug.
Musk highlighted the potential safety and economic benefits of autonomous vehicles, stating that they are expected to be “10–20 times safer than human-driven vehicles.” He also estimated a cost of just “20 cents per mile,” a significant reduction compared to the current $1 per mile for city buses. Tesla aims to launch fully autonomous driving in Texas and California by next year, with the robotaxi, now referred to as the Cybercab, projected to enter production between 2026 and 2027. However, Musk acknowledged that production could be delayed until as late as 2027.
Beyond autonomous cars, Tesla is also developing the Optimus robot, expected to cost between $20,000 and $30,000. This robot would be capable of performing a variety of tasks, furthering Tesla’s shift toward robotics and artificial intelligence. During the unveiling at Tesla’s “We, Robot” event in Burbank, California, Musk emphasized that this innovation could “save lives, a lot of lives, and prevent injuries.” The event featured a prototype demonstration, with Tesla reportedly mapping the area beforehand.
Tesla is working to evolve beyond its core electric vehicle business into producing robots and AI technologies. The company, valued at more than most other global automakers combined, owes much of its market value to Musk’s vision of developing fully autonomous vehicles. However, the success of this robotaxi project remains uncertain, especially given the skepticism of autonomous vehicle (AV) experts. They have consistently questioned Tesla’s approach, particularly regarding its push for Level 2 driver-assist systems like Autopilot and Full Self-Driving (FSD), which still require drivers to remain attentive.
While Musk has had past successes with unexpected breakthroughs, such as with the Model 3 and the Cybertruck, Tesla lags behind competitors like Waymo and Cruise in autonomous vehicle testing. These companies have logged millions of miles on the road with their driverless cars, while Tesla’s efforts have been hindered by safety issues and government scrutiny. Several incidents, including a fatal accident involving a motorcyclist, have raised concerns about the safety of Tesla’s driver-assist systems, prompting recalls and investigations.
Despite these challenges, Musk continues to promote autonomous vehicles as time-savers. “Think about the cumulative time that people spend in a car,” he said, “and the time they will get back that they can now spend on their books or watching a movie or doing work or whatever.” However, the broader rollout of robotaxis has faced setbacks, including traffic jams and safety concerns, and federal regulators are investigating the technology’s safety.
Musk’s leadership has also been scrutinized, especially as his involvement with X (formerly Twitter) has caused a rift with some Tesla customers. His public promotion of controversial viewpoints has alienated many, particularly progressive-leaning buyers, adding further complexity to Tesla’s future trajectory in the AV industry.