Tesla has been teasing robotaxis for years. Chief executive Elon Musk now says they are just months away. With typical grandiloquence, he claims that turning electric vehicles into self-driving cars could be “the biggest asset value appreciation in history”. Yet Tesla’s autonomous driving software still requires drivers to keep their hands on the steering wheel and their eyes on the road. It is a stretch to imagine that robotaxis can turn the company’s fortunes around this year.
Musk presided over the company’s latest quarterly earnings call with a confusing message. Look at the company’s spending decisions and it seems as if everything is targeted towards addressing the 13 per cent drop in automotive revenues. Tesla is cutting existing vehicle prices in a bid to reverse the fall in sales and planning cheaper models next year. To reduce costs, it will lay off 10 per cent of its workforce.
Listen to what Musk says, however, and it sounds as if Tesla’s main concern is its expensive autonomous driving project. Earlier this month, Musk wrote on X, “Tesla Robotaxi unveil on 8/8”. On Tuesday it showed plans for a ride-hailing app.