Elon Musk announced a new date for unveiling Tesla’s “robotaxi” prototype, now set for October 10, after delaying the original reveal planned for August 8.
Musk indicated that the delay was due to his desire to implement a significant design change to the front of the prototype, enhancing the overall design and allowing for additional features to be included. While he mentioned that “a couple of other things” would be showcased during the event, he did not elaborate on what these might these might be.
Focusing on Autonomy
The robotaxi, envisioned to operate with “unsupervised” full self-driving software, is central to Tesla’s long-term plans.
Earlier in the year, Musk made significant workforce reductions, cutting over 10% of Tesla’s global staff to realign the company towards developing AI-powered products, with a strong focus on autonomy. This shift is intended to support Tesla’s broader strategy, though it currently intersects with the company’s primary revenue source—selling electric vehicles (EVs).
In the second quarter of 2024, Tesla reported a profit of $1.5 billion, down 45% from the same period last year. This profit included a record $890 million from regulatory credit sales, but was impacted by a $622 million restructuring charge. Total revenues rose by 2% year-over-year, reaching $19.9 billion, although automotive revenues fell by 7%.
The company has faced a challenging year, with a 55% drop in profit year-over-year in the first quarter. There is now a realistic possibility that Tesla could sell fewer EVs in 2024 compared to 2023, which would be a significant change from its prior growth trends.
Tesla has sought to reassure investors by describing the company as being “between two major growth waves,” with expectations that the introduction of new products like the Cybertruck and other forthcoming models, despite their controversial and high-cost nature, will drive future sales.
Musk dismissed these concerns, stating that the core of Tesla’s value lies in its autonomous technology. This includes not only the robotaxi but also projects like the humanoid robot, Optimus, which has also faced delays. The emphasis remains on realizing fully self-driving cars, a goal that Musk has frequently touted but has yet to achieve.
On the call, Musk expressed optimism about offering Tesla’s first unsupervised robotaxi ride by the end of this year, though he also allowed for the possibility that it might not occur until 2025, acknowledging his tendency toward overly optimistic projections.
Upcoming Innovations and Expectations
Musk encouraged investors to look forward to the October 10 event for more details about the robotaxi and possibly other innovations will be revealed.
According to a biography by Walter Isaacson, an illustration of a small robotaxi prototype was included, hinting at its design.
Musk has proposed that the robotaxi service would be accessible via Tesla’s app, similar to ride-hailing services like Uber and Lyft. He also suggested that Tesla owners might be able to add their vehicles to the shared network once the Full Self-Driving software reaches the required level of capability, a milestone the company has not yet achieved.
Despite Musk’s longstanding promises, Tesla continues to face lawsuits and regulatory investigations related to its self-driving technology.
Featured Image courtesy of Ian Forsyth/Getty Images
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