Elon Musk Reveals New Two-Door Robotaxi

 In a hurry? Here’s a quick summary…

• Elon Musk unveiled a new robotaxi and a robovan at a recent event, aiming to shift Tesla's focus from mass-market vehicles to robotics, with production slated for 2026 and a price under $30,000.

• Investors expressed disappointment over the lack of concrete timelines and details on Tesla's plans for robotaxi production and regulatory approval.

Elon Musk unveiled a new robotaxi featuring two gull-wing doors and no steering wheel or pedals during a high-profile event on Thursday, alongside a robovan, marking a shift in Tesla's ambitions from being a low-priced mass-market automaker to a robotics manufacturer. 

Musk introduced the vehicle, dubbed the "Cybercab," which is slated for production in 2026 and is expected to retail for under $30,000 (approximately Ksh. 3.9 million). 

He noted that operating costs would be around 20 cents per 1.6 kilometers, and the vehicle would utilize inductive charging, eliminating the need for plugs.

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Musk emphasized that the robotaxi relies on artificial intelligence and cameras, foregoing the additional hardware typically used by competing robotaxi services. 

This approach has raised concerns among investors and analysts regarding the technical and regulatory challenges it may face. 

The event, titled "We, Robot," held at Warner Bros. studio near Los Angeles, was a nod to Isaac Asimov's "I, Robot" stories and reflected Musk's vision of Tesla as an AI robotics company rather than merely an automaker. The audience included investors, stock analysts, and Tesla enthusiasts.

However, many investors left the event feeling disappointed, hoping for more concrete details on Tesla's timeline for ramping up robotaxi production, securing regulatory approvals, and executing a robust business strategy to outpace competitors like Alphabet's Waymo.

 "Everything looks cool, but not much in terms of timelines. I'm a shareholder and pretty disappointed. I think the market wanted more definitive timelines," remarked Dennis Dick, an equity trader at Triple D Trading. Musk acknowledged that he tends to be optimistic regarding timelines, especially considering past missed promises, including his 2019 prediction that operational robotaxis would be ready by 2020.

Following these setbacks, Musk has shifted his focus to the development of robotaxis after scrapping plans for a smaller, more affordable vehicle, which many viewed as vital for countering declining demand for electric vehicles (EVs). 

Tesla is at risk of experiencing its first-ever decline in deliveries this year, as purchasing incentives have failed to attract sufficient customers to its aging lineup. Significant price cuts aimed at offsetting high interest rates have further squeezed profit margins.

The complexities of robotaxi technology and stringent regulations have led to substantial losses for various companies attempting to penetrate this market, with some even shutting down. 

Nevertheless, several firms, including General Motors' Cruise, Amazon's Zoox, and Chinese companies like WeRide, continue to persevere. 

Unlike competitors that rely on costly hardware like lidar, Musk plans to utilize only cameras and AI to operate the Full Self-Driving (FSD) system, aiming to keep costs manageable. 

However, FSD has come under scrutiny due to its requirement for constant driver attention and has been implicated in at least two fatal accidents.

Musk stated, "We do expect to start fully autonomous, unsupervised FSD in Texas and California next year. That's with the Model 3 and Model Y." 

However, he did not clarify whether the new robotaxis would incorporate any new technology or depend solely on the existing FSD system.