Tesla Unveils "Cybercab" Robotaxi

Tesla unveiled a new robotaxi, the “Cybercab”. The new Cybercab, expected to be priced at less than $30,000, has two gull-wing doors and no steering wheel or pedals – the vehicle is designed to be completely self-driving. Tesla CEO, Elon Musk, highlighted safety and time saving as the key selling features to the Tesla Cybercab. Musk stated that based on training data, autonomous vehicles are expected to be up to 30 times safer than human-driven cars, noting that the robotaxi “doesn’t get tired, and it doesn’t text.”

While Musk did not provide a specific timeline, he indicated that production could begin in 2026. However, analysts and industry experts are not as optimistic. Given its lack of steering wheel or pedals, it will need approval from regulators before going into production, and the current technology still has difficulty responding to certain scenarios such as inclement weather and complex intersections.  

Musk himself admitted during the presentation that he “tend[s] to be a little optimistic with timeframes.” In fact, Musk previously told investors in 2019 that Tesla would have more than 1 million robotaxis on the road by the following year, which to date has not come to fruition.

Further, commentators are perplexed as to the use cases for a two-door robotaxi, pointing to concerns of how it would carry families and luggage to the airport. According to Sandeep Rao, a senior researcher at Leverage Shares, “the market for two-door robotaxis would be very limited”.

Investors appeared to be underwhelmed after the event, with shares falling as much as 10% afterwards.