Tesla has finally revealed its much-anticipated robot taxi, Optimus, but the humanoid robot might end up being more profitable for the company. Meanwhile, the electric vehicle manufacturer is facing the challenge of losing several high-ranking officials.
Tesla revealed its much-awaited self-driving taxi, named the Cybercab, at a grand event on Thursday night at Warner Bros. Studios in Burbank, Calif.
Elon Musk, the company’s leader, mentioned that the self-driving car, which doesn’t have a steering wheel or brakes, is likely to be ready for production by the end of 2026 and will be priced below $30,000. However, Tesla’s stock dropped by nearly 8 percent early Friday, indicating that some investors were not as excited about the announcement.
The Cybercab is a key project for Tesla, as Musk is betting the company’s future on autonomous technology in the face of growing competition from well-known car manufacturers and Chinese companies. Musk didn’t specify when the company would get the required licenses to sell the car or to use it on public roads.
Musk has previously made predictions that Tesla would soon introduce cars that could drive without any human input. The vehicles Tesla sells today have features like Autopilot and Full Self-Driving, but the company states that a human driver must always be prepared to take control.
On Thursday, Musk mentioned that Tesla plans to launch “fully autonomous” driving with its current models, the Model 3 and Model Y, in California and Texas next year. It’s unclear if Tesla has started the process to get the permits needed to operate a car without a driver in California.
Despite Musk’s long-standing interest in self-driving technology, Tesla has fallen behind other robotaxi companies, like Alphabet’s Waymo, which is currently running a ride-hailing service in cities like San Francisco, Los Angeles, and Phoenix.
Safety concerns
Mr. Musk also mentioned his anticipation for “completely self-driving technology” to be available in Tesla’s Model 3 and Model Y models in Texas and California by the end of next year, provided regulatory authorities give their consent.
However, securing this approval is not a sure thing.
“It’s a significant amount of metal navigating through traffic at high velocities, which raises serious safety concerns,” explained Samitha Samaranayake, a professor of engineering at Cornell University.
Tesla’s drive towards autonomous driving is dependent on the use of cameras, which are more affordable than radar and Lidar (light detection and ranging) devices that form the core technology of many rivals’ cars.
By programming its vehicles to drive autonomously, Tesla intends to leverage artificial intelligence (AI) that is trained on the vast amount of data gathered from its extensive fleet of vehicles.
However, the academic research community remains skeptical about whether Tesla’s approach can ensure the safety standards we desire, according to Mr. Samaranayake.
Although Cybercab attracted a lot of interest, it’s Optimus humanoid robot that could end up being Tesla’s most lucrative item. Musk hinted at Optimus being “the largest product in history, of any type,” with expected earnings reaching $25 trillion. During the showcase, five Optimus robots performed a dance routine, while some others were seen dispensing beverages and engaging with attendees, showcasing a range of accents and personalities. It’s unclear if the robots were operated remotely, but the rapid pace and lifelike motions of the robots among the audience might suggest they were.
