“Optimus ultimately will be worth more than the car business, worth more than FSD,” he said.

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Robotaxi has been in production for many years

Tesla’s robotaxi pursuit puts it in competition with companies that have been developing autonomous vehicle technology for robotaxis for years, including the Alphabet unit Waymo, Argo AI, Aurora, GM’s self-driving subsidiary Cruise, Motional and Zoox.

It also calls into question whether Tesla intends to scrap its current strategy to full autonomy or if this will be developed in parallel.

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Musk has been hinting at robotaxis for years, but not through a standalone product like the one he described Wednesday. Instead, he has repeatedly promised to turn the Tesla vehicles that people own today into their own robotaxi via an upgraded advanced driving assistance system called Full Self-Driving software that currently costs $12,000.