Elon Musk unveils Cybercab, Robovan as focus shifts to automation

Elon Musk showcased a robotaxi with two gull-wing doors and no steering wheel or pedals at a splashy event on Thursday and added a robovan to the roster as Tesla’s goal shifts from low-priced mass-market automaker to robotics manufacturer.

Musk reached the stage in a Cybercab, which he said would go into production in 2026. It would be priced less than $US30,000 ($44,462). He said operation would cost US20¢ per 1.6 kilometre over time and charging would be inductive, requiring no plugs.

Elon Must at the robotaxi event “We, Robot”.Credit: Tesla

He said the cars relied on artificial intelligence and cameras and did not need other hardware such as what robotaxi rivals use – an approach investors and analysts have flagged as challenging from a technical and regulatory standpoint.

“The autonomous future is here,” Musk said. “We have 50 fully autonomous cars here tonight. You’ll see model Ys and the Cybercab. All driverless.”

A Tesla robotaxi with two gull-wing doors.Credit: Tesla

Musk also showcased a larger, self-driving vehicle called Robovan, which can carry up to 20 people. He also showed off Tesla’s Optimus humanoid robot.

Musk’s plan is to operate a fleet of self-driving Tesla taxis that passengers can hail through an app. Individual Tesla owners will also be able to make money on the app by listing their vehicles as robotaxis.

Thursday’s event at the Warner Bros studio near Los Angeles is titled We, Robot, an apparent nod to the I, Robot science-fiction short stories by American writer Isaac Asimov, but it also echoes Musk’s insistence that Tesla “should be thought of as an AI robotics company” rather than an automaker.

Those attending included investors, stock analysts and Tesla fans.

Investors expecting concrete details on how quickly Tesla can ramp up robotaxi production, secure regulatory approval and implement a strong business plan to leapfrog rivals such as Alphabet’s Waymo were left disappointed.

Said Dennis Dick, an equity trader at Triple D Trading: “Everything looks cool, but not much in terms of timelines. I’m a shareholder and pretty disappointed. I think the market wanted more definitive time. I don’t think he said much about anything. He didn’t give much info.”

Musk told the crowd that consumers would be able to buy the Cybercab but then he offered a hedged answer when someone in the crowd asked when it would be available.

“Probably, well I tend to be a little optimistic on timeframes, but in 2026,” Musk said. “Before 2027, let me put it that way.”

Missed promises

Musk in 2019 said he was “very confident” the company would have operational robotaxis by the next year. After missed promises, Musk this year diverted his focus to developing the vehicles after scrapping plans to build a smaller, cheaper car widely seen as essential to countering slowing EV demand.

Tesla is at risk of posting its first-ever decline in deliveries this year as buying incentives have failed to attract enough customers to its ageing EV line-up. Steep price cuts meant to offset high interest rates have also squeezed profit margins.

Tesla has added a robovan to the roster.Credit: Tesla

Complicated technology and tight regulation have led to billions of dollars in losses for other companies attempting to crack the robotaxi market, forcing some to shut shop.

Some are still pushing, including General Motors’ Cruise, Amazon’s Zoox and Chinese firms such as WeRide.

Unlike expensive hardware such as lidar that others use, Musk is relying only on cameras and AI to run its full self-driving software to keep costs down. But FSD, which requires constant driver attention, has faced regulatory and legal scrutiny. There have been at least two fatal accidents involving the technology.

“We do expect to start fully autonomous unsupervised FSD in Texas and California next year,“ Musk said. “That’s with the Model 3 and Model Y.”

He did not say whether the robotaxis would use any new technology or if they would depend on FSD.

Reuters, Bloomberg

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