Following the recent controversy where Reuters claimed that the $25,000 affordable Tesla was canceled, CEO Elon Musk promptly refuted the report as false. In a surprising turn of events, Musk then took to X (formerly Twitter) to announce that the autonomous Tesla Robotaxi will be unveiled on August 8, 2024.
This announcement marks a significant milestone that dates back to 2016 when Tesla initially revealed its plans for a self-driving people carrier. While details have been limited, references to a “Robotaxi Concept” in Walter Isaacson’s biography of Musk, coupled with early sketches of a “gen 3” vehicle, have been circulating.
The Tesla Robotaxi is becoming a reality.
Elon Musk has long championed Tesla’s robotaxi, envisioning it as a cutting-edge self-driving people carrier that could redefine mobility. This vision had investors betting heavily on Tesla, uncertain if it would ever materialize until now. Musk has set a summer release date for this game-changing innovation.
According to reports, Musk was insistent on creating an autonomous robotaxi devoid of pedals or a steering wheel. However, his team persuaded him to develop an affordable “global car” to help the brand meet a lofty 50% annual growth target without compromising on innovation.
While it’s known that both the robotaxi and the affordable EV share the same platform, the extent of their design and engineering overlap remains unclear. With the robotaxi’s reveal preceding that of the affordable Tesla, uncertainties loom on whether the latter will see the light of day—especially since sources suggest that the low-cost family car has been shelved according to Reuters.
Communications from the company have been inconsistent and puzzling. Two years ago, Tesla executives hinted that the affordable EV might precede the robotaxi, but Musk seems to have redirected plans.
Musk’s announcement may have been a direct response to the Reuters report. Subsequent to his post, Tesla stock experienced a 3% increase, rebounding from an earlier dip.
The next-generation Tesla is crucial for the brand as investors have expressed concerns about its recent performance. Tesla’s stock has dropped by 33% since the beginning of the year, with Q1 sales showing a rare decline. The looming threat of competitors catching up and the influx of inexpensive Chinese EVs in the U.S. market pose significant challenges.
To counter these challenges, experts suggest that the $25,000 EV should have taken precedence over the Cybertruck, a massive steel behemoth that doesn’t necessarily cater to democratizing EVs. Despite this, Musk seems intent on moving forward with the robotaxi project. The repercussions of this decision on the brand’s future will become apparent in the coming months.