tesla cybercab

Tesla Cybercab

Tesla CEO Elon Musk said the Cybertruck could be available for purchase as early as 2027 and could cost under $30,000. According to Elon Musk, every bus ride costs about a dollar per mile, but the Cybercab will cost only 20 cents per mile and will save both time and money while ensuring safety.

Tesla CEO Elon Musk took the stage last night to share his vision of “an autonomous future,” unveiling a range of updates for the company’s robotaxi, also known as the “Cybercab,” Full Self-Driving (FSD) features, and other products.

What happened: Musk arrived in a working Cybercab before taking the microphone from Tesla’s chief designer Franz von Holzhausen, who gave a brief introduction. Shareholders and investors had been eagerly awaiting the event, especially after Tesla experienced a drop in sales and profits in the first half of the year. They were hoping Musk could restore confidence in the company’s long-term potential. During his presentation, Musk made several announcements important to the auto industry, starting with details about the Cybercab, Tesla’s driverless taxi.

The Cybercab is designed for fully autonomous driving, without pedals or steering wheels, and charges via inductive power. While Musk admitted he’s often overly optimistic, he projected that production would start in 2026, with a launch price of under $30,000.

Musk also announced that the unsupervised FSD system, the same one powering the new robotaxi, will soon be available for all Tesla models, including current ones. Model 3 and Model Y owners are expected to be the first to receive the update, likely by 2025.

Additionally, Musk introduced a “Robovan,” a self-driving vehicle capable of carrying 20 passengers or transporting cargo. While details were scarce, he did showcase a prototype that drove by the stage.

What was missing: Some products were notably absent from the event. For instance, Musk didn’t mention Tesla’s “affordable” model, despite earlier denying claims that it had been scrapped in favor of the robotaxi project. There was also no update on the Tesla Semi or whether it would get unsupervised FSD like other models.

Musk’s vision: The Tesla CEO spoke extensively about the “autonomous future” he envisions and the benefits it could bring. He suggested that individuals could buy a fleet of Cybercabs or other Tesla models to run their own rideshare businesses. However, while Musk painted a clear picture of his goals, questions remain about how Tesla will achieve them.

Testing for the Cybercab is set to begin in Texas and California next year, wherever regulations permit. However, Tesla doesn’t currently have the necessary permits to operate fully driverless vehicles, which could limit its testing ability since there’s no way to manually control the robotaxi.

As of July, only seven companies were allowed to test driverless vehicles in California, and only three—Mercedes-Benz, Nuro Inc., and rival robotaxi firm Waymo—had clearance for fully autonomous deployment.

General Motors’ self-driving unit, Cruise, previously had permission to operate autonomous vehicles but lost its approval after a vehicle struck and dragged a pedestrian last October.

What’s next: Tesla’s planned launch of the “unsupervised full self-driving” update across all models may face regulatory hurdles. Musk claimed this system would let drivers sleep through their rides and wake up at their destination.

Such a system would likely be classified as Level 5 autonomy, meaning no human input is required during the ride.

Currently, the most advanced self-driving system approved in the U.S. is Mercedes-Benz’s Drive Pilot, which is Level 3. This means it can operate without human input for parts of the journey but still requires some attention. Tesla’s FSD is currently rated as Level 2, meaning drivers must stay fully aware at all times.

The bottom line: With increasing competition in the electric vehicle market, Musk needed to reignite confidence in Tesla at this event. He managed to avoid major missteps and delivered working prototypes, unlike the infamous Cybertruck reveal. While the event was promising, Musk has made big promises in the past, and some have taken longer than expected to come to fruition. If Tesla misses its targets in the coming months, investors may be less forgiving.

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