Tesla is at a pivotal juncture as CEO Elon Musk is set to reveal the long-awaited Cybercab robotaxi at Warner Bros. Hollywood studio on Thursday. While there are rising doubts about electric vehicle growth, the announcement has reignited interest in Tesla’s stock. The Cybercab will function autonomously on Tesla’s ride-hailing platform, enabling vehicle owners to generate income by utilising their cars as self-driving cabs—an idea Musk describes as a combination of Airbnb and Uber.
Tesla intends to leverage its current camera-based technology and AI for the Cybercab, steering clear of the costly radar and lidar systems used by competitors. Musk is confident that improvements in this technology will allow Tesla to penetrate a tough market where others have faced substantial losses. Investors are keen to view a prototype and learn about the timeline for mass production and profitability. They also seek clarity on the regulatory hurdles and safety issues surrounding the existing partial automation system, known as Full Self-Driving (FSD).
While expectations for the event are high, analysts caution that the announcement may lack immediate deliverables or financial impact. Many observers do not anticipate a fully functional product at this stage, noting Tesla’s history of optimism regarding its FSD technology. The company may also provide updates on more affordable vehicle options and its humanoid robot, Optimus, during the event.
Since Musk announced the shift to robotaxis in April, Tesla shares have surged nearly 50%. However, concerns linger about competition from electric vehicle rivals and the stock’s inherent volatility. The journey to market for self-driving vehicles has proven complicated and expensive for other companies, with Waymo being the only US firm currently operating uncrewed robotaxis. Analysts highlight that reaching high levels of automation without driver supervision will encounter considerable technological, safety, and regulatory challenges, raising doubts about the timeline for achieving Musk’s ambitious goals.