TLDR:
- Tesla to unveil robotaxi prototype called “Cybercab” on October 10, 2024
- Event seen as pivotal for Tesla’s future direction and stock price
- Robotaxi expected to be fully autonomous, with butterfly doors and no driver’s seat
- Musk aims to create Uber/Airbnb-like service for Tesla owners to rent out their cars
- Tesla faces regulatory hurdles and competition from Waymo in autonomous driving
Elon Musk’s Tesla is set to reveal its much-anticipated robotaxi prototype, dubbed “Cybercab,” at an event on October 10, 2024. The unveiling, which Musk has called “one for the history books,” marks a significant shift in Tesla’s focus from traditional car manufacturing to autonomous driving technology.
The event, named “We, Robot,” will take place at Warner Bros. Discovery’s movie studio near Los Angeles. It has drawn considerable attention from Wall Street analysts and Tesla influencers, who see it as a pivotal moment for the company’s future direction and stock price.
Tonight, Live on X: The Metamorphosis of Tesla
Tonight's unveiling of the Tesla Robotaxi will be by far the biggest and most impactful product and service launch the company and the entire auto industry have ever seen because it changes the paradigm of personal transportation… pic.twitter.com/yHhUxtQR5g
— Alex (@alex_avoigt) October 10, 2024
According to sources familiar with the matter, the Cybercab is expected to feature a unique design with two front seats and butterfly doors that open upward. Unlike Tesla’s current models, the robotaxi will not have a driver’s seat, emphasizing its fully autonomous capabilities.
Tesla’s approach to self-driving technology relies heavily on cameras and computing power, eschewing the laser-based Lidar sensors used by competitors like Waymo and Cruise. Musk has long maintained that Lidar is unnecessary and too expensive for mass-market autonomous vehicles.
The robotaxi service Musk envisions would function as a combination of Uber and Airbnb, allowing Tesla owners to add their vehicles to a fleet when not in use. This model could potentially generate income for Tesla owners while they sleep or work.
The company has yet to achieve full self-driving capabilities with its current driver assistance features, which still require constant human supervision. Additionally, Tesla has not applied for the necessary permits in California to operate a commercial passenger service with autonomous vehicles, putting it behind competitors in the regulatory process.
The focus on robotaxis comes at a time when Tesla is experiencing its first-ever annual vehicle sales decline. In the third quarter of 2024, Tesla delivered just under 463,000 cars, missing analyst estimates. This slowdown has put pressure on the company to diversify its revenue streams and justify its high stock valuation.
Tesla’s stock price has been volatile in recent months, reflecting investor uncertainty about the company’s future. After falling nearly 43% in the first four months of 2024, the stock rebounded, rising almost 72% from its late-April low. As of October 9, 2024, Tesla’s stock closed at $241.05, down 1.41% for the day.
Analysts are divided on the potential impact of the robotaxi unveiling on Tesla’s future. RBC Capital Markets analyst Tom Narayan raised his price target for Tesla to $236, estimating that the robotaxi business could represent $153 billion in revenue for the company.
However, CFRA analyst Garrett Nelson urges caution, noting that previous predictions about the robotaxi market have been overly optimistic.
The “We, Robot” event is also expected to include updates on Tesla’s humanoid robot project, Optimus, and possibly information about more affordable Tesla models slated for production next year.
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