Tesla Inc., the electric carmaker, is gearing up to unveil its long-awaited Robotaxi on August 8, as announced by CEO Elon Musk on his social media platform, X (formerly known as Twitter). This move comes amidst Tesla facing sluggish sales amid increasing competition from affordable Chinese electric vehicles (EVs), as reported by Bloomberg.
Following Musk’s announcement, Tesla’s shares surged by up to 5.1 percent in postmarket trading in New York. However, it’s worth noting that the company’s stock has witnessed a 34 percent decline this year up to Friday’s (April 5) close.
The Robotaxi project holds significant importance for Tesla, being a cornerstone of its high valuation. This ambitious plan for a fully autonomous vehicle was initially presented to investors in 2019. Recent updates include the rollout of the latest version of Tesla’s driver-assistance software, marketed as Full Self-Driving (FSD), to consumers.
While Tesla has hinted at both a cheaper car and a dedicated Robotaxi as part of its next-generation vehicle platform, prototypes for either are yet to be unveiled, according to Bloomberg. Musk’s recent announcement suggests a shift in priority towards the Robotaxi project, although both are expected to be developed on the same platform.
Earlier reports from Reuters suggested Tesla’s abandonment of plans for a less-expensive vehicle, redirecting resources towards the Robotaxi project. Musk promptly refuted these claims, stating, “Reuters is lying,” without elaborating further.
Tesla’s production surplus of 46,561 vehicles in the first quarter led to price reductions, according to Bloomberg. With a consumer trend favoring hybrid models over pricier EVs, manufacturers are reconsidering their electrification strategies.
Elon Musk’s bold product unveilings have historically generated excitement among customers and investors, without relying on traditional advertising. However, not all announcements have translated into successful execution, as demonstrated by the delayed production and slow ramp-up of the Cybertruck following its highly anticipated debut in November 2019.
