Elon Musk, the CEO of Tesla, recently announced that the company will unveil its purpose-built “robotaxi” prototype on October 10th. This comes after a previous plan to reveal it on August 8th was scrapped. Musk also mentioned that there will be a few other surprises during the event, although he did not provide specific details.
The delay in unveiling the robotaxi prototype was mainly driven by Musk’s desire to redesign certain elements of the vehicle. Earlier this month, Musk revealed that he requested an important design change to the front of the vehicle. By moving the unveiling date back a few months, Tesla was able to make improvements to the robotaxi and incorporate additional features.
The robotaxi, along with the unsupervised full self-driving software that will power it, is a crucial part of Tesla’s future plans. Earlier this year, Musk made significant organizational changes within the company to focus on developing AI-powered products and advancing autonomy. However, this shift towards an AI-focused future is hampering Tesla’s primary profit center of selling electric vehicles (EVs).
In its second-quarter earnings report, Tesla revealed a 45% decrease in profit compared to the same period last year. While total revenues increased slightly, automotive revenues dropped by 7%. This performance follows a challenging first quarter for the company, where profit plummeted by 55% year-over-year.
As a result, Tesla is facing the possibility of selling fewer EVs in 2024 than it did in the previous year, which would be a significant setback for the company’s growth trajectory. To address this concern, Tesla is banking on the success of upcoming models like the Cybertruck and other mysterious future models that may be sold at a lower price point.
However, Musk emphasized that these factors are merely distractions compared to Tesla’s long-term focus on autonomy. He believes that autonomy is where the company’s true value lies. This includes the development of a humanoid robot called Optimus and, most importantly, the long-awaited promise of self-driving cars.
To redirect investors’ attention towards this vision, Musk highlighted the importance of the October 10th event. Although not much is known about what Tesla will showcase, an illustration of a small robotaxi prototype was featured in Musk’s biography written by Walter Isaacson in 2023.
Musk has previously mentioned that the vehicle will be accessible through Tesla’s app, similar to how ride-sharing services like Uber and Lyft operate. He also claimed that Tesla owners will be able to add their own cars to the shared network once the Full Self-Driving software is advanced enough to handle all driving tasks. However, despite years of promises, Tesla has struggled to deliver on the idea of fully self-driving cars. As a result, the company is facing lawsuits from owners and investigations by government agencies.
When questioned about when Tesla will offer its first unsupervised robotaxi ride, Musk admitted that he tends to be overly optimistic with predictions. While he believes it could happen by the end of this year, he also acknowledged that it may not be until 2025.
In conclusion, the unveiling of Tesla’s robotaxi prototype on October 10th is highly anticipated. It represents a crucial step towards achieving Tesla’s vision of autonomy and self-driving cars. However, the company is currently facing challenges with declining profits from EV sales. Despite these obstacles, Musk remains focused on the future and the potential that autonomy holds for Tesla’s long-term success.
