Tesla CEO Elon Musk has announced that the company will unveil its purpose-built “robotaxi” prototype on October 10th, after postponing the initial reveal scheduled for August 8th. The delay was due to Musk’s desire to make certain design changes to the prototype, as confirmed by Bloomberg. During Tesla’s second-quarter earnings call, Musk stated that the extra time allowed for improvements to the robotaxi and the addition of other features, although he did not provide further details.
The Tesla robotaxi, along with its “unsupervised” full-self-driving software, is a crucial component of Tesla’s future plans. Earlier this year, Musk initiated a company-wide reorganization, including a significant reduction in staff, to prioritize the development of AI-powered products. This shift towards autonomy is aimed at solidifying Tesla’s position as a leader in the field.
However, this AI-focused future is conflicting with Tesla’s main source of revenue, which is the sale of electric vehicles (EVs). In the second quarter of 2024, Tesla reported a profit of $1.5 billion, a 45% decrease compared to the same period last year. The decline was partly offset by record regulatory credit sales but was also affected by a $622 million restructuring charge. Automotive revenues dropped by 7% to $19.9 billion, reflecting a challenging start to the year for the company.
As a result, there is a possibility that Tesla may sell fewer EVs in 2024 than it did in 2023, marking a significant reversal in its growth trajectory. To mitigate this, Tesla aims to boost sales with the introduction of new models like the polarizing and expensive Cybertruck. Additionally, the company plans to offer lower-priced future models.
Despite these challenges, Musk emphasized that Tesla’s long-term value lies in autonomy. He highlighted the upcoming October 10th event, where Tesla will showcase its latest developments. The details of the event are currently scarce, but an illustration of a small robotaxi prototype was featured in Walter Isaacson’s biography of Musk in 2023.
Musk envisions making the robotaxi accessible to users through Tesla’s app, similar to how ride-hailing services like Uber and Lyft operate. He also intends to allow Tesla owners to put their own vehicles on the shared network once the Full Self-Driving software reaches a level of sophistication that can handle all driving tasks. However, Tesla has faced challenges in delivering on its promises of fully self-driving cars, leading to lawsuits from owners and investigations by government agencies.
When asked about the timeline for offering unsupervised robotaxi rides, Musk admitted that it could be possible by the end of this year but also acknowledged that it might not happen until 2025. He acknowledged that he tends to be overly optimistic with his predictions.
In conclusion, Tesla’s upcoming robotaxi prototype unveiling on October 10th is a significant event for the company’s future. While facing challenges in its EV sales and fully self-driving car development, Tesla remains focused on its long-term goal of achieving autonomy. The success of the robotaxi and the Full Self-Driving software will play a crucial role in determining Tesla’s position as an industry leader in the coming years.
